I took a look at this news today and found it very interesting. The website of mechel is :
http://www.mechel.com/about/production_capacity/list.wbp
before reading the news below pay attention to the link above in particular to the ferroalloys section. What's interesting me here is the number of ferroalloy plants .
When you open up each site you see that there is only one mine spoken about which had approx. 19.5 million tonnes(as of 2006) and is in Kazakhstan. Mechel used to import chromite to use in their plants. You got to ask yourself: what are the grades of this 19.5 million tonnes and if you had this amount in 2006 how long is it going to last you? Perhaps you may need a new source of supply from a stable country in let's say 2016???
Baosteel to Buy 25% Stake in Russian Mechel Mining for USD1.25bn
May 01, 2013
Baosteel Group is reportedly in talks with Russia’s coal and steel group Mechel over buying a 25% stake in Mechel’s mining sector for possibly US$1.25bn.
The entire unit sector be valued at US$5bn while the blocking stake is reportedly worth US$1.25bn. Mechel is one of the leading Russian companies and its business includes four segments: mining, steel, ferroalloy and power.
