Russia’s state-owned diamond company Alrosa said its board approved the sale of 51% of its Timir iron-ore unit in Siberia to Evraz Plc (EVR), the steelmaker part-owned by mining billionaire Roman Abramovich.
Alrosa’s directors also agreed to sell one share in the project to VEB, Russia’s state-development bank, with the diamond producer retaining the right to nominate Timir’s chief financial officer.
The Russian company acquired the rights to develop four deposits of iron ore in the south of Yakutiya region for $173 million in 2008 and united them into the Timir project.
Alrosa valued the project at $10 billion, saying it would require $3 billion in investments at the initial stage.
Earlier in the year, Evraz said is could invest up to 1.5 billion in Timir over five years.