Steel and mining company ArcelorMittal has announced the sale of its interest in Severny Kuzbass coal mines to Russia's private coal trader National Fuel Company (NTK), for an undisclosed amount.
Severny Kuzbass is said to operate two coal mines in Siberia, the Federal Anti-Monopoly Service reported.
The mines were acquired by the company from Russian steel producer Severstal for $652m in 2008, and are located in the Kemerovo region of Siberia, Russia.
As part of the transaction, ArcelorMittal will sell assets such as the coal mines of Berezovskaya and Pervomaskaya, which jointly produce 700,000t of coal a year.
The company bought the Kuzbass mines as part of its strategy to secure sufficient delivery of coal to its steel operations in the Ukraine.
ArcelorMittal Mining CEO Bill Scotting said: "The decision to dispose of the Kuzbass coal mines follows a strategic review of the assets.
"As our Ukraine steel operations now source coking coal from ArcelorMittal's mines in Kazakhstan, Kuzbass is no longer a strategic asset for ArcelorMittal.
"We are pleased to have agreed the sale to NTK, as Kuzbass is an important employer in the region and this offers a sustainable solution for employees and other stakeholders."
With a geographically diversified portfolio of iron ore and coal assets, ArcelorMittal is strategically positioned to serve its network of steel plants and the external global market.
In 2013, the company's iron ore production reached 58.4 million tonnes.
Image: ArcelorMittal Headquarters in Luxemburg city. Photo: courtesy of Werneuchen.