Metalloinvest brings good news to the market on the threshold of its IPO. The company is a world leader for iron ore resources, having overcome Brazilian Vale.
During recent year Metalloinvest increased its iron ore resources by 8% to 14.9 B tons, in accordance with JORC classification (proven and assumed resources) by July 1. The growth was provided in account of Lebedinsky GOK. And Metalloinvest became the world leader for this feature, having iron ore resources for 160 years ahead with the current mining rate, informed the representative of the holding yesterday while presentation of the half-year report. Brazilian Vale is the second for iron ore resources with 14.3 B tons, stressed Metalloinvest, and Australian BHP Billiton is the third with 2.9 B tons.However, at the same time Metalloinvest takes the six place in supplies of iron ore to the market. The leading supplier is Vale with 238 M tons of iron ore in 2009, while Metinvest supplied 32 M tons in the same time.During the next 5 years Metalloinvest plans to expand ore mining by 30-40% annually to 52-56 M tons per year, said Edward Potapov, CEO of Metalloinvest. This will be made without any new mergers and acquisitions but exclusively due to sufficient investments into the present assets, he stressed. There are three large investment projects at Lebedinsky and Mikhaylovsky GOK with total cost of 56.6 B rubles for four years, disclosed the company.