MMK buys Australian company for half a billion dollars

Magnitogorsk Iron and Steel Works (MMK) will acquire Australian mining company Flinders Mines for $ 537 million. This was reported in the press release. The deal could be closed in March 2012.


The Board of Directors unanimously adopted earlier Flinders CMI offer to acquire 100 percent of the company, since the sum of twice its market value. Magnitogorsk corporation does not intend to change the structure of the Australian managers.

According to analysts, Flinders can 100 percent of the need to close the MMK in iron ore. Flinders is the main asset of mine in Western Australia’s Pilbara. Its reserves are 917 million tons of high legkodobyvaemoy ore.

Production at the field will start in 2015. Will annually produce about 15 million tons of ore.

MMC is included in the thirty largest companies in the world steel production. In 2010 the company produced 11.4 million tons of steel. The main beneficiary of the structure is the chairman of its board of directors Victor Rašnikov.

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