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October 12, 2011

ENRC to acquire stake in Kazakh coal mine

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.

 

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