ALROSA intends to leave the Yakut iron ore project “Timir”, which planned to implement in conjunction with Evraz. The company is now looking for your package in 49% strategic investor, however, under the terms of the shareholders ‘ agreement will not be able to withdraw from the joint venture with Evraz until 2023. Evraz is considering various options for the implementation of Timir, but actually announced in 2013, the project is paused — investment program with a volume of $1.5 billion is not yet adopted.ALROSA is engaged in search of strategic investors for sale of its stake in GMK Timir, a partner of which is Evraz, told “Kommersant” representative of the diamond mining company. According to him, the company’s Supervisory Board included a “Timir” in the register of non-core assets, subject to exclusion. But to talk about some of the parameters of the deal or potential buyers so far, said in a statement, ALROSA. The representative of Evraz said “Kommersant” that the company is considering various options for the implementation of this project, but it is too early to talk about something specific.”Timir” is a joint venture between Evraz and ALROSA. Since 2008, the company holds licenses to iron ore mining and associated components of the Yakut deposits gorkitskoe, tarynnahskoe, desovskoe and taiga with total reserves of 5 billion tons. One of the main conditions for the use of subsoil areas is the integrated development of all four fields, which must be carried out by a single scheme with the construction of two processing plants and metkompleks. The main option was the construction of Tayozhny Mining with production of 1.5 million tons of iron ore, which is planned to be delivered to the processing plant and processed at Evraz ZSMK. Evraz acquired a controlling stake in the project for 4.95 bn in 2013. At ALROSA 49% minus 1 share, and the web 1 share.It was assumed that Timir will eventually replace depleted reserves “Evrazrudy”,—, Evraz and now ore not secured 100%, and the holding has long-term plans to reach full self-sufficiency. It is mainly related to ZSMK in Novokuznetsk, as NTMK is provided with a raw material Kachkanarsky GOK.ALROSA also was disappointed in the project. June 16, its head Sergei Ivanov, speaking during an online meeting, of the Lena club, called the project the result of “wrong decisions” on business diversification after the crisis of 2008. However, out of Timir will be difficult. In the prospectus to the latest issue of dollar Eurobonds of ALROSA said that the company, in accordance with the agreement of shareholders of Timir, does not have the right to alienate his share in the joint venture until 2023. In the case of Evraz mining company can sell their shares at the same price he did. While Evraz in the event of its release can force ALROSA to sell its stake to a third party at the same price as Evraz.According to Maxim Hudalova of an ACRE, the problem field is that its development is linked with the construction of the steel plant and the HBI plant, which are now investors have no funds. Although iron ore prices are now high, everyone understands that this is caused largely by the restrictive measures of the Brazilian government (after a major accident at the tailings dam Vale in 2019), he said. According to him, the authorities of Yakutia insist on the fullest possible development, leading to endless negotiation of a feasibility study. In the prospectus, ALROSA says that total investment in the project is estimated at $1.5 billion, however at the moment the investment program is not adopted.Eugene Zainullin
