November 20, 2008

Evraz increases stake in Cape Lambert

It is reported that Russian steel producer Evraz Group has become the owner of a 19% stake in Australia's Cape Lambert Iron Ore.

Evraz exercised the option to buy a 16% stake in Cape Lambert on last Wednesday. The steelmaker bought a 3% stake in the Australian company in June.

Evraz has also agreed to buy a controlling stake in Delong Holdings Ltd, a Singapore based producer and trader of hot rolled steel coils, which holds an option to buy about 12% of Cape Lambert.

Australia's Financial Review said that Cape Lambert has also proposed that Evraz buy a controlling stake in the company to prevent China Metallurgical Group from purchasing its iron ore project.

Reserves under the Cape Lambert project amount to 1.56 billion tonnes of magnetite.