ENRC denies decision over international spin off

published 8 May 2012

Under pressure FTSE 100 mining company, Eurasian Natural Resources (ENRC) says it has not made any decision on a possible spin off of its operations outside Kazakhstan.

There were press reports over the weekend of ENRC demerging its interests in the Democratic Republic of Congo, in addition to its coal mines in Mozambique and iron ore operations in Brazil.

Only 5,000 of the company's 70,000 workers are employed outside Kazakhstan, and selling its international assets could be the start of repairing ENRC's battered image.

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In the last 12 months the stock has dropped 41% following the purchase of a copper mine in Democratic Republic of Congo that the government there had forcibly seized from another firm, First Quantum.

Cashing in on another firm's misery did not go down well in London, and led to a massive boardroom row, resulting in the the departures of respected city figures Sir Richard Sykes and Ken Olisa from the board.

The incident also prompted more general concern over the corporate governance of foreign-owned firms listed in London.

In response to the press speculation ENRC says it "is determined to deliver value to its shareholders and, as outlined in its preliminary results, the Group continues to review all methods to achieve this, including acquisitions, joint ventures and spin-offs."

The statement concludes by asserting: "At present no decision has been made and the company continues to evaluate various options".