ENRC to acquire stake in Kazakh coal mine

12 October 2011 (Last Updated October 12th, 2011 18:30)

Eurasia Natural Resources (ENRC) is planning to acquire two million common shares of Shubarkol Komir from Eurasian Industrial (EIC) for an aggregate value of $600m and assumed debt of about $50m.  

Eurasia Natural Resources (ENRC) is planning to acquire two million common shares of Shubarkol Komir from Eurasian Industrial (EIC) for an aggregate value of $600m and assumed debt of about $50m.

Shubarkol Komir is a thermal coal producer in Kazakhstan, with proved and probable JORC-compliant coal reserves of 326.2Mt.

With this acquisition, the coal production capacity of ENRC in Kazakhstan will exceed 25Mtpa of coal .

ENRC CEO Felix J Vulis said that the increased coal production capacity in Kazakhstan will support the firm's existing operations and expansion plans, enabling the firm to maintain a low-cost production position.

The firm has also proposed the launch of a tender offer, subject to completion of the acquisition, to acquire all the outstanding preference shares of Shubarkol for a consideration of $12.6m.