1.Pretty obvious why burston left - his job was done 2.Power...

1.Pretty obvious why burston left - his job was done

2.Power United is a hong kong based investment company -obviously a sub of dings delong

3.Evraz in process of taking over delong

4.CFE is the supplier to delong of resource

5.Evraz has to takeover CFE but awaiting FIRB approval

6.HMMMMMMMM Evraz isnt gonna want to give away 66million more for dividend to shareholders so takeover imminent as long as firb approval

7.Takeover pays for itself from the 400 million that MCC paid.Smart operators!!!

read this article its a goody.



Evraz to Boost Stake in Delong, Increase Coal Output (Update3)

By Yuriy Humber

Aug. 29 (Bloomberg) -- Evraz Group SA, Russia's biggest steelmaker by market value, plans to take control of China's Delong Holdings Ltd. and raise coal output as it bets prices will continue to rise next year.

Evraz expects to get regulatory approval next month to buy a controlling stake in the Singapore-listed company, Chief Executive Officer Alexander Frolov told reporters in Moscow today. Evraz will then make an offer to increase its stake to 75 percent, worth S$1.22 billion ($860 million).

Delong, which makes hot-rolled steel coil in the northern province of Hebei, is Evraz's first deal in Asia. The steelmaker has spent $5 billion this year on plants and mines in Ukraine, Canada and the U.S. It supplies steel used in construction, pipes and rails, and forecasts further growth in energy and infrastructure spending.

``We don't believe there will be a potential steel material downturn next year,'' Chief Financial Officer Pavel Tatyanin said on a conference call. ``We don't see iron ore or coal prices falling next year and that determines the cost base.''

Evraz global depositary receipts advanced $3.10, or 4.3 percent, to $75.50 at the close in London, after earlier jumping as much as 6.4 percent.

Evraz said first-half net income climbed 82 percent to $2.04 billion, or $5.56 a receipt, beating the $1.86 billion median estimate of seven analysts surveyed by Bloomberg News. Evraz declared an interim dividend of $2.75 a receipt.

Output Forecast

The company raised its crude-steel output forecast for 2008 to 19.8 million metric tons, from 18.9 million tons predicted in March. Evraz plans to boost production at its biggest coal unit, OAO Yuzhkuzbass, by 57 percent within 4 years, Frolov said. Production may rise to 22 million tons as soon as 2011, from 14 million tons this year, he said.

The mining unit, based in Siberia's Kuzbass region, will switch its focus to coking coal used in steelmaking. Evraz produces all its coking coal and 93 percent of its iron ore, insulating the company from record prices for the ingredients.

Other steelmakers, such as Luxembourg-based ArcelorMittal, the world's largest, are also seeking to expand in China, the biggest market for the metal. China bars foreign businesses from taking majority stakes in companies listed in the country.

``We're into the second stage of the process, which will expire in middle of September,'' Frolov said. ``We're not getting any negative signals.''

The expansion in China and Evraz's moves into North American and Eastern Europe will ``hedge the company against a potential downturn in the commodity steel environment,'' Alexei Morozov, co-head of research at UBS AG in Moscow, said by phone.

Iron Ore

The Cape Lambert Iron Ore project in Western Australia that Evraz agreed to develop in July with China Metallurgical Group Corp. will supply Delong with raw materials, Frolov said.

Delong gained 18 cents, or 6.3 percent, in Singapore trade to S$3.04 at the close. The Chinese company, founded by Ding Liguo, ranked as the nation's 50th biggest mill, according to the Beijing Antaike Information Development Co.

Evraz acquired 10 percent of Delong in February and said it would seek to take over the company.

The Russian company will also hold talks next month with its biggest customer, OAO Russian Railways, on a three-year contract, Frolov said. The contract will lead to higher prices this year and next year, he said.

The company plans to refinance $850 million in short-term debt held by the Ipsco unit before the year end in a ``similar fashion'' to last month's refinancing for the Oregon and Claymont north American units, Tatyanin told investors.

Evraz said Aug. 15 it borrowed $725 million to refinance the debt of its North American unit. It got a $550 million five- year credit line, costing 2.5 percentage points over the London Interbank Offered Rate, and a $175 million five-year loan at 3.25 percentage points above Libor.

To contact the reporter on this story: Yuriy Humber in Moscow at [email protected]