OREANDA-NEWS. February 08, 2010. The activity field of ZabGOK JSC ( “Trans- Baikal ore-dressing and processing enterprise JSC”) is the extraction and processing of ores for obtaining rare earth metals, extraction and processing of other non-ferrous metal ores for of producing high-quality concentrates.

The Federal Antimonopoly Service of Russia has accepted acquisition of 97,23% shares of ZabGOK JSC (Chita Region), which are owned TVEL JSC (a 100% subsidiary of Atomenergoprom JSC ), by NefteKhimMash Ltd. (Moscow).

According to Director of NefteKhimMash Ltd. Dmitry Lekht the aim of acquisition of GOK is the diversification of the core business of NefteKhimMash.

"We plan to attract investments for modernization of facilities and equipment at ZabGOK, for introduction of new technologies for production of antimony, fluorite concentrates, tantalum and niobium pent-oxides, gold alloy. We will begin with the renewal of licenses for use of mineral resources and updating of existing projects for the enterprise’s development. For us it is important not only production but also a good remuneration for plant’s personnel, ensuring a healthy social environment for working activity" — he said.

The activity field of ZabGOK JSC is the extraction and processing of ores for obtaining rare earth metals, extraction and processing of other non-ferrous metal ores for producing high-quality concentrates. The compounds of rare earth metals (REM) are applied at the manufacture of products made of hard alloys and used in various industries — metalworking, mining equipment, road construction.

The parties have agreed not to disclose the total amount of the bargain. Sale of shares of ZabGOK JSC is a part of a program on optimization and improvement of efficiency of the enterprises belonging to TVEL JSC, that, inter alia, provides for removal of non-core assets which includes ZabGOK. Currently, the main production of ZabGOK JSC is production of fluorite concentrate based on processing of ores originated from the Egitinsky deposit.

Recently Atomenergoprom JSC and TVEL JSC conducted a search for socially responsible investors interested in the development of GOK (ore-dressing and processing enterprise). At that, TVEL JSC as the largest shareholder, has devoted considerable attention to social sphere of the enterprises belonging to GOK. In particular, during the period of time from 2008 to 2009 TVEL has allotted to the group of companies of ZabGOK JSC the funds (a loan) amounting to more than 90 million rubles to pay off debts on electricity and salaries.

The representatives of NefteKhimMash Ltd. had already held meetings with regional authorities and informed them of the development plans of the GOK. In particular, there were meetings with Deputy Prime Minister of Trans-Baikal region Yevgeny Vishnyakov, Minister of Industry and Energy of Trans-Baikal region, Oleg Polyakov. Evgeny Vishnyakov noted that "the company has found a strategic investor."

NefteKhimMash Ltd. (www.n-him.ru) is an investment company existing since 2005. Commencement of its business activity is connected with supplies of special equipment, metals and LNG trading. Nowadays, in partnership with some investment funds they are involved and develop production of rare metals.