Eurasian Natural Resources Corporation PLC and Magnitogorsk Iron & Steel Works have settled legal claims
Eurasian Natural Resources Corporation PLC (ENRC) and Magnitogorsk Iron & Steel Works (MMK) are pleased to announce their decision to amicably settle the existing dispute between the two companies.
ENRC has dropped its claims against MMK and called off the asset freezing order that was issued against MMK and its subsidiary MMK-Mining Assets Management S.A.
The relevant notifications were sent to the International Court of Arbitration at the International Chamber of Commerce in Zurich, as well as to the Federal Court of Australia.
Boris Dubrovsky, Chief Executive Officer, MMK, said: “We are satisfied with the results of our negotiations with ENRC. Mutual waiver of claims by the two parties confirms our bilateral intention to cooperate on a long-term basis.”
Felix J Vulis, Chief Executive Officer, ENRC, said: "ENRC and MMK continue to benefit from long-term partnership and we are pleased to retain MMK as one of our valued customers.”
MMK is among the world's largest steel producers and is one of the leaders of Russia's steel industry. The company's operations in Russia include a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of higher value added products. In 2010 the company produced 11.4 mln tonnes of crude steel and 10.4 mln tonnes of commercial steel products.
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ENRC is a leading diversified natural resources group, performing integrated mining, processing, energy, logistics and marketing operations. The operations comprise: the mining and processing of chrome, manganese and iron ore; the smelting of ferroalloys; the production of iron ore concentrate and pellet; the mining and processing of bauxite for the extraction of alumina and the production of aluminium; the production of copper and cobalt; coal extraction and electricity generation; and the transportation and sales of the Group's products. The Group's production assets are largely located in the Republic of Kazakhstan; other assets, notably the Other Non-ferrous Division, are mainly located in Africa; the Group also has iron ore assets in Brazil. The Group's entities in H1 2011 employed on average 75,050 (2010: 74,098) people. In 2010, the Group accounted for approximately 4% of Kazakhstan's GDP. The Group currently sells the majority of its products to Russia, China, Japan, Western Europe and the United States. For the six months ended June 30 2011, the Group had revenue of US$4,011 million (2010: US$6,605 million) and profit attributable to equity shareholders of the Group of US$1,182 million (2010: US$2,185 million). ENRC has six operating Divisions: Ferroalloys, Iron Ore, Alumina and Aluminium, Other Non-ferrous, Energy and Logistics. ENRC is a UK company with its registered office in London. ENRC's shares are quoted on the London Stock Exchange ('LSE') and the Kazakhstan Stock Exchange ('KASE'). For more information on ENRC visit the Group's website at www.ENRC.com.
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