It is reported that China steel mills are looking for Russian iron ore mines, as they always try to hunt oversea mines to lighten or shake off the world largest miner yoke. Mines in Russia become another choice for China mills apart from traditional mines in Australia, Africa and South Africa.
According to foreign news agency, there are three or four China steelmakers concerned in the buying of a mine under Alrosa Co. Located in South Yakutia a place in Siberia 300 kilometers from the Sino-Russian border, the mine has a 5 billion tonnes of iron ore reserve and is estimated to be worth about USD 1 billion.
Alrosa Co is going to sell the mining right of the mine. Mr Sergey Grechishkin a consultant from Alrosa Co revealed that Alrosa was talking with three or four Chinese companies on the selling. He expected the transaction process would be fixed at the end of May. The consultant didn’t reveal the names of those Chinese companies.
Mr Grechishkin added that Alrosa was considering selling 50% to 100% stake of its company which takes charge of the development of the mine in South Yakutia. As learned, South Yakutia is expected to store unproved 20 billion tonnes of iron ore reserve.
He said that the seller would make further decision after those Chinese companies handed in their offers last week end. It’s expected that the mine would need two-three years long development before the official mining.
Mr Sergey Pushki vice chairman of Alrosa said “Alrosa is seeking investors for Timir.”
Timir is a subsidiary founded in September 2008 by Alrosa and it is to develop the iron ore resource in South Yakutia.