Russian steelmaker Magnitogorsk Steel eyes Australian iron miner Flinders Mines
23 Nov 2011
Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) is planning to acquire Australian iron miner Flinders Mines in order to supplies of the mineral that is essential in steel making.
In a regulatory filing on Tuesday, Russia's third-largest steelmaker said that the company's board of directors discussed the possibility of acquiring Flinders Mines. But the Magnitogorsk, Chelyabinsk Oblast-based steelmaker did not provide any further details of the deal.
The potential deal comes amid last month media reports that India's AV Birla Group's Essel Mining is in close talks to buy Flinders Mines
Formerly known as Flinders Diamonds Limited and changed its name to Flinders Mines in May 2008, the Adelaide-based miner operates in the resource rich region of Pilbara, Western Australia.
It holds 100 per cent interests in two iron ore deposits tenements in the Hamersley Ranges in the Pilbara.
Its Pilbara Iron Ore Project has an expected development cost of $640 million. The project has a 20-year mine life and is expected to produce up to 15 million tonnes of iron ore per year by the 4th quarter of 2014.
