OREANDA-NEWS. On September 13, a decision on participation of OJSC MMK in the authorized capital of OJSC Belon was taken by the Board of Directors of OJSC MMK, the press service of MMK reported. The stock was acquired from Sapwood Investments Limited. Going ever forward, OJSC MMK will consider a further increase of its stake in OJSC Belon.

OJSC MMK's participation in the authorized capital of OJSC Belon, which has a strong growth potential, is in line with Magnitogorsk Iron & Steel Works strategic plans towards creation of its own raw material base and allows OJSC MMK to further secure long-term supplies of coal of the the required grades.

Belon Group is a dynamic producer of coal and coal concentrate and one of the leading steel traders in Russia. OJSC Belon is the managing company of the Group, which comprises of  several mining, processing and service companies. The Group includes Chertinskaya-Koksovaya, Novaya-2, Listvyazhnaya and Kostromovskaya (under construction) coal mines, Novobachatskiy-1 and Novobachatskiy-2 open-cast mines (under construction), Belovskaya and Listvyazhnaya concentration plants. In 2006, its coking coal production amounted to 1,724 million tons, coal concentrate production - to 4,389 million tons. The total volume of coking and thermal coals produced came to 3,381 million tons. According to Belon Group IAS accounts, the Group's revenue for 2006 amounted to RUB 10 billion 430 million, net income for 2006 was RUB 1 billion 222 million.