Magnitogorsk Iron & Steel Works : MMK Group completes acquisition of Tikhov Mine in Kemerovo Region

MMK-COAL (part of PJSC Magnitogorsk Iron and Steel Works Group) has completed the acquisition of Tikhov Mine, located in the Leninsk-Kuznetsk district of the Kemerovo Region, from PJSC Koks (part of the IMH Group).

Tikhov Mine launched its operations in 2017 and has a production capacity of about 1.3-1.5 million tonnes per year, with plans to expand production to 2.8 million tonnes per year. The mine produces 2Zh-grade coal, which has some of the best process specifications among fat coking coal grades.

Tikhov Mine is located in close proximity to MMK-COAL's currently active Kostromovskaya mine. These mines are developing neighbouring areas of the Nikitinsky coal deposit in the Kuznetsk Basin, which has extensive reserves of Zh-grade coking coal. The acquisition of Tikhov Mine will create direct synergies between MMK-COAL's assets, enabling the company to cut operating costs while optimising its plans for integrated mining operations in the most efficient way possible.

In addition, the acquisition of the mine will enable MMK-COAL to supply the full capacity of the Belovskaya Central Processing Plant with its own coal feedstocks and to increase its profit margins. Adding valuable Zh-grade coal from Tikhov Mine will improve the quality of the coal charge and coke, which is especially important in light of the upcoming launch of MMK's new coke oven battery No. 12.