On December 2, Severstal announced that it plans to sell coal assets to the Russian energy company (Russkaya Energiya). The transaction amount is expected to be 15 billion rubles (approximately US$203.5 million). The company said the transaction is expected to be completed in the first quarter of 2022.
According to Severstal Steel, the annual greenhouse gas emissions caused by the company’s coal assets account for approximately 14.3% of Severstal’s total greenhouse gas emissions. The sale of coal assets will help the company focus more on the development of steel and iron. Iron ore business, and further reduce the carbon footprint of corporate operations. Severstal hopes to reduce coal consumption by deploying new production processes in steel plants, thereby reducing greenhouse gas emissions caused by steelmaking.
However, coal is still an important raw material for smelting steel by Severstal. Therefore, Severstal plans to sign a five-year purchase agreement with the Russian energy company to ensure that Severstal will receive sufficient coal supply in the next five years.