A-Property completed the acquisition of a remaining 51% stake in Elga coal complex from Mechel PAO for $1.2bn.

A-Property completed the acquisition of a remaining 51% stake in Elga coal complex, a deposit of a coking coal, from Mechel PAO, a Russian mining and metals company, for $1.2bn. “With the current economic situation and our debt leverage in mind, we made a difficult but well-considered and informed decision to sell Elga Coal Complex. The funds we receive with this deal will be used to repay part of our loan obligations to VTB Bank and Gazprombank. Reduced debt leverage will help us implement our investment program aimed at increasing coal mining and processing at our Kuzbass and Yakutia facilities, as well as increasing output of high-margin products in our steel division. This will enable us to retain financial and social stability in Mechel Group’s operations and ensure Mechel Group’s further development,” Oleg Korzhov, Mechel PAO CEO.