Magnitogorsk Delays EU2.5 Billion Mine Project, Vedomosti Says

OAO Magnitogorsk Iron & Steel will delay the development of the Prioskolskoye iron-ore mine for at least a year after steel prices fell, Vedomosti reported, citing Yevgeny Savchenko, the governor of Russia’s Belgorod region.

Magnitogorsk must start building infrastructure at the deposit by Dec. 1, 2009, to avoid violating the terms of its license, Vedomosti said. The estimated project cost is as much as 2.5 billion euros ($3.2 billion), of which Magnitogorsk planned to borrow 80 percent, the newspaper said.

To contact the reporter on this story: Torrey Clark in Moscow at tclark8@bloomberg.net.

To contact the editor responsible for this story: David Merritt at dmerritt1@bloomberg.net

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