Basic Element of Oleg Deripaska has lost monopoly for molybdenum production in Russia after Ural Mining and Metallurgical Co. (UGMK) of Iskander Makhmudov, on the photo, emerged as the second player on the market.
Photo: Valery Levitin
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Basic Element Lost Molybdenum Monopoly
Basic Element of Oleg Deripaska has lost monopoly for molybdenum production in Russia after Ural Mining and Metallurgical Co. (UGMK) of Iskander Makhmudov emerged as the second player on the market. For this purpose, UGMK won the tender to explore and develop Yuzhno-Shameisk deposit of molybdenum ore.
The battle at the tender for Yuzhno-Shameisk deposit was really tough Monday. To be declared successful bidder, UGMK had to offer 330.6 million rubles for the asset, which starting price was 58 million rubles. As the metal content is very low in the ore, UGMK will have to acquire an ore mill in the next move. It could be Malyshevskoe Rudoupravlenie, where TVEL owns 51 percent and which is not far from the molybdenum deposit, said a source with the Sverdlov Region’s Industry Ministry.
Yuzhno-Shameisk deposit of molybdenum ore is located close to Malyshevo-village, the Sverdlov region. The C2 ore reserves are estimated at 79.2 million tons, including 52,900 tons of molybdenum. According to analysts, the vicinity of Urals deposit to China will enable UGMK to generate money on molybdenum exports. In UGMK, however, they say they need the raw for themselves.
So far, Basic Element of Oleg Deripaska has been the only player on molybdenum market of Russia. It mines molybdenum concentrate and ferromolybdenum (4,400 tons a year) in deposits in Chita and Khakassia. According to company’s representatives, they didn’t bid at Ekaterinburg tender.
www.kommersant.com
All the Article in Russian as of Sep. 12, 2007
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