Metalloinvest’s partly owned Andrey Varichev Mikhailovsky GOK and USM have established a joint venture (JV) Sber and Mikhailovski HBI (MHBI) for the production of hot briquetted iron (HBI).
Under a strategic agreement in the JV, MHBI will construct the plant in the Krusk region. USM and Mikhailovsky GOK will own 45pc and 55pc shares, respectively.
The new plant is scheduled to start by the first half of 2024 with an investment of over $540,400 (RUB40mn). Sberbank will open a line of credit of $620mn for MHBI until December 31, 2034, and expand its cooperation with both USM and Metalloinvest.
MHBI is expected to create around 400 jobs in the region, Metalloinvest noted in a statement on Friday.
($1 = RUB72.81)