The Russian steelmaker and iron ore producer Evraz Group (Evraz) has sold approximately 60 million shares in the Australian iron ore company Cape Lambert Iron Ore Limited (Cape Lambert). The shares were purchased by Australian and British institutions, reads the Australian company's statement.
Reportedly, after Evraz increased its stake in Cape Lambert to 19 percent in August 2008, its market capitalization dropped heavily and its expansion plans in Australia were put on hold. Evraz started to gradually decrease its Cape Lambert holding, and prior to this culminating sell-off, it held more than 72 million shares in Cape Lambert, i.e. 13.65 percent of the issued equity.
According to the reports, with the sale in question, Evraz exited the Australian company and the joint venture with China Metallurgical Group Corporation (MCC) for the development of West Australia-based Cape Lambert iron ore project, which holds 1.56 billion mt of magnetite in reserves with iron content of 31.2 percent. As SteelOrbis previous reported, Evraz concluded the agreement for joint development of the project with MCC in August 2008, shortly after it acquired another 16 percent stake in Cape Lambert.