Mechel Gives Up Iron Ore Licenses to Focus on Efficient Deposits

OAO Mechel (MTL), Russia’s biggest producer of coal for steelmakers, gave up two iron-ore licenses in the Irkutsk region of Siberia to focus on more efficient deposits.

Korshunov Mining Plant, a Mechel (MTLR) unit, quit the Tatyaninskoe and Krasnoyarovskoe licenses because of a low iron content in the ore, Mechel said today in an e-mailed response to questions. The company will instead focus on developing new iron-ore deposits in Yakutia, home to the Elga coal field.

In March, Mechel acquired licenses for the Sivaglinskoe deposit, whose 26.4 million metric tons of ore has an iron content of 53 percent, and the Sutamsky iron-ore area which may hold as much as 1.35 billion tons of iron ore resources.

To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

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