OAO Magnitogorsk Iron & Steel (MMK), Russian billionaire Victor Rashnikov’s steelmaker, may sell 49 percent of its Turkish steel mill to help fund iron ore projects in Australia, said Chief Executive Officer Boris Dubrovsky.
The steelmaker, known as MMK, is “in discussions” about the possible sale of the stake in its MMK Metalurji mill in Turkey with at least three local bidders, and may use the proceeds to develop projects started by Flinders Mines Ltd. (FMS) in Australia, Dubrovsky told reporters in Magnitogorsk today. The sale depends on “a decent offer” and the mill reaching full capacity, he said.
MMK is set to complete acquisition of Flinders for A$554 million ($580 million) next month and plans to invest A$1 billion to produce 15 million metric tons of iron ore by 2015 at a currently untapped field.
MMK bought the 49 percent stake in the Turkish unit from the Atakas family last year for $475 million, raising their ownership to 100 percent.
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