Evraz, the steel making and mining company, has announced that it signed an agreement to purchase a stake in Timir for $160m. At completion Evraz will possess a 51 per cent stake in Timir.
Timir is a joint venture between Evraz and Alrosa created for the development of iron ore deposits and is currently holding licences for four iron ore deposits in the southern part of Yakutia in Russia.
Total investments in the first phase of the Timir project are anticipated to total $1.8bn from 2013 to 2018 with the whole project expected to create 11,000 new jobs including 4,000 positions at the Tayozhnoye ore mining and processing plant.
Alexander Frolov, Evraz's CEO:
The large iron ore resources of Timir in combination with proximity to the existing infrastructure provide for the efficient development of the project as a low cost operation. The realisation of the Timir project is an important milestone of the Company's strategy for securing a raw materials base for EVRAZ ZSMK, and is envisaged to eventually replace the gradually depleting reserves of Evrazruda over the next 5-10 years."