The shifts in ownership of the country’s key coal assets will transform the key players within the coking and thermal coal sectors, as well as have wide ranging ramifications for exports.
Earlier this month MDM Group and Russia’s second largest steel producer Severstal reached an agreement to split up coal producer Kuzbassugol, according to IPR Strategic Information.
MDM owned a 48% share in Kuzbassugol, whilst Severstal held the remaining 52%. Kuzbassugol was the third-largest coal company in Russia.
The deal will see MDM becoming a major player within the power-generating coal market with the company coming out of the deal with eight steam coal mines from Kuzbassugol.
MDM have busily been buying energy assets, which could be supplied by their newly acquired steam coal mines.The supply of the power stations with steam coal from the eight mines could have an affect on the export market.
Severstal have taken control of five coking coal mines from Kuzbassugol.
As reported by IPR, Aton analyst Aleksandr Agibalov told "Vedomosti" the deal appeared to be mutually beneficial for both companies.
Further moves within the industry, including the acquisition of formerly owned government coal assets are under way, with reports yet to be confirmed.
