OREANDA-NEWS. October 15, 2007. SCM (System Capital Management) Limited (Cyprus), a subsidiary of ZAO SCM, owns 50% of charter fund of Starmill Limited (Cyprus) to which belongs 99.88% of Krivoy Rog Iron Ore Plant (KZhRK). Thus, SCM indirectly owns 49.94% of charter fund of this company. We don’t exercise control over KZhRK. We have delegated management rights for this share of SCM in the charter fund of KZhRK to Metinvest, the mining and metal business of the Group, involved in management within its corporate rights scope together with other owners.

SCM’s interest in KZhRK is due to constant interest of the Group in extracting ore mining enterprises including companies focused on production of sintering ore. In future, we will keep analyzing carefully offers that arise in the market and consider possibility of their acquisition should they be in line with the strategy of the Group.