Diversified mining giant Eurasian Natural Resources Corp (ENRC) has completed the acquisition of thermal coal group Shubarkol Komir JSC, which is expected to enhance the company's position as a leading coal producer in Kazakhstan.
ENRC has today completed the open trade on the Kazakhstan Stock Exchange to acquire the outstanding 75% of common shares in Shubarkol for $600m, after having proposed the exercise of an option back in October 2011. When the group first proposed the acquisition, it said it would also take on $50m of assumed debt.
"I am very pleased that we have concluded this strategic transaction, which has been supported by the overwhelming majority of ENRC's shareholders," said Chief Executive Officer Felix J Vulis.
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"The acquisition of this high-quality thermal coal asset favourably positions us to meet the growing energy needs of our businesses in Kazakhstan and enhances our integrated, low-cost position," he said.
Shubarkol produced 6.0m tonnes of coal in 2010, equal to 5.4% of Kazakhstan's total coal production. It generated earnings before interest, tax, depreciation and amortisation (EBITDA) of $85.3m.
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