The three Russian companies will develop the Tavan Tolgoi coal deposit in the South Gobi region. Tavan Tolgoi, one of the world's largest undeveloped deposits of premium coking coal, is located close to the rapidly-developing South-East Asian sales markets, the companies said in a joint statement.
The consortium members are interested in investing on a parity basis in the construction of a modern mining facility at the coal field, and in developing the necessary transport and energy infrastructure, the statement said.
"Special attention will be paid to environmental issues and the region's social development," the statement said.
Established in 1997, BasEl holds combined assets worth over $13 billion in energy, machinery, natural resources, financial services, and construction.
Founded in 1990, Renova has assets in sectors such as oil, chemicals, machinery, mineral resources, construction, finance, housing and utilities. It is a major shareholder in the Russian-British joint oil venture TNK-BP and aluminum company Sual, which recently announced a merger with Russia's Rusal and Switzerland's Glencore to create the world's largest steel producer.
Severstal is Russia's second largest steel producer with assets in eight countries. Severstal sought a merger with the world's second-largest steelmaker, Luxembourg-based Arcelor, but the deal, signed May 26, fell through when it was rejected by Arcelor shareholders June 30, in favor of a bid from the world's largest steel company, Mittal Steel.
