Gunvor, Volga Resources buy Russian coal mines

Wed Jul 6, 2011 7:00am GMT | Reuters

* Purchase price not disclosed
* Mines will produce 3-4 mln tonnes of coking coal per year
* Total reserves 363 mln tonnes

MOSCOW, July 6 (Reuters) - Energy trader Gunvor and Volga Resources said on Wednesday they had agreed to buy a 51 percent stake in Russian coking coal mines in Yakutia with 363 million tonnes of reserves.

The Kolmar mines, originally held by billionaire Mikhail Prokhorov's Onexim group, allow Gunvor to expand its growing coal business.

"This deal marks our first entry into Russian coal mining," Gunvor chairman Torbjorn Tornqvist said in a statement.

The trader, co-owned by businessman Gennady Timchenko, is diversifying its traditional crude oil and petroleum commodities trading business into other areas.

Under the terms of the deal, the Lonestate Assets investment vehicle will acquire 51 percent of Kolmar from existing shareholders.

Lonestate will fund the purchase via a loan from Montlink, a joint venture of Gunvor and Volga Resources.

Kolmar holds four licences in the Chulmakan and Denisovsky coalfields and annual production is planned at 3-4 million tonnes of coking coal.