Severstal Resources, the mining division of Severstal, bought a 100% stake August 11 in the Balazhal gold mine, which has estimated recoverable gold reserves of 20 metric tons and potential reserves of up to 30-40 tons.
Earlier last month, Severstal completed the acquisition of Esmark Incorporated, a U.S. manufacturer and distributor of flat rolled and other steel products. Esmark, now a wholly-owned subsidiary of Severstal, has already been renamed the Severstal Wheeling Holding Company, the Russian company said.
In July 2008, Severstal acquired a 100% stake in WCI Steel, Inc. for $414.9 million, although the company said earlier it had spent $140 million on the asset.
WCI Steel will be renamed Severstal Warren, Inc.
The Russian steelmaker said earlier on Thursday its net profit calculated to International Financial Reporting Standards (IFRS) grew 69% year on year to $1.94 billion in the first six months of 2008.
The company is listed on the Russian and the London stock exchanges. In 2007, it produced 17.5 million tons of steel and reported revenues of $15.2 billion.
