EVRAZ (LSE: EVR) (“EVRAZ”) confirms the recent press speculation that EVRAZ Highveld Steel and Vanadium (“EVRAZ Highveld”), EVRAZ’s South African subsidiary, and Arkein International (“Arkein”) have signed an agreement to establish a joint venture, Nyanza Light Metals (PTY) Limited (“Nyanza”). The joint venture has been set up to perform feasibility studies around the possible extraction of titanium from the waste steel slag produced by EVRAZ Highveld and its beneficiation to produce the titanium dioxide pigment. EVRAZ Highveld will initially own a 20% share in the joint venture.
At present the project is at an early stage and does not require significant capital investment. It would be premature at present to estimate the potential size of likely capital expenditure. EVRAZ Highveld’s future level of participation and actual share in the project will depend on the results of the feasibility studies and the decisions by EVRAZ Highveld’s future owner.
The entry into the joint venture project will not affect the ongoing negotiations for the sale of EVRAZ Highveld, which is expected to be completed by the end of the third quarter of 2013.
For further information:
VP, Corporate Communications
London: +44 207 832 8998 Moscow: +7 495 937 6871
Director, Investor Relations
London: +44 207 832 8990 Moscow: +7 495 232 1370