June 24 (Bloomberg) -- OAO Novolipetsk Steel, Russia’s largest maker of the metal by market value, will bid for an untapped coking-coal deposit in eastern Siberia.
The Ulug-Khem deposit contains 640 million metric tons of hard coking-coal reserves, according to a regulatory filing by Novolipetsk’s Stoilensky GOK mining unit. It’s located in the Tyva region, where competing steelmaker Evraz Group SA acquired another untapped coal field in March.
Unlike domestic rivals, Lipetsk, Russia-based Novolipetsk has zero self-sufficiency in coal and depends on prices charged by third-party suppliers, according to ING Groep NV research. Coking coal and iron ore are raw materials for making steel.
Russia’s Natural Resources Ministry is accepting bids for the Ulug-Khem license until July 2 and will pick the winner Sept. 21, according to Interfax. Russian steelmaker OAO Severstal may consider bidding for the deposit as well, according to the company’s Resources Division.
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