Russian oil-to-metals giant expands into SA

MOSCOW – Oil-to-metals giant Renova, controlled by Russian billionaire Viktor Vekselberg, extended its global reach on Friday by setting up a company in South Africa to invest in mining projects.

The move follows Russian metals firm Norilsk Nickel’s purchase in March of 20 per cent in South Africa’s Gold Fields – the world’s No.4 gold company – for US$1,16 billion (N$6,96 billion). “Renova has set up a subsidiary in South Africa, Renova Investments Ltd., whose aim is to choose promising investment projects in the mining and metals industries,” Renova said in a statement.”The aim is to explore and develop new mines as well as set up companies with high-quality production.”Vasily Verbin, Renova’s spokesman, said there were still no concrete projects in the pipeline.”It’s too early to say,” he said.Renova, set up just months before the Soviet collapse in 1991, is an investment house controlling Russia’s second-biggest aluminium producer, SUAL.Vekselberg also co-heads TNK-BP, a Russian joint venture of Britain’s BP and one of the country’s biggest oil firms.Vekselberg has been broadening his ties with Western mining partners recently.Last weekend, he said US Alcoa might take part in SUAL’s US$2,1 billion (N$12,6 billion) Komi aluminium project in northern Russia.He had earlier hired one of the mining industry’s biggest deal makers, Brian Gilbertson, as non-executive director of one of SUAL’s holding companies to help better position the company to tap global capital markets.SUAL and Britain’s Fleming Family and Partners, a private group owned by the Scottish banking dynasty, also want their joint venture, SUAL International, to become a global mining group to rival big names such as BHP Billiton or Rio Tinto.-Nampa-Reuters”Renova has set up a subsidiary in South Africa, Renova Investments Ltd., whose aim is to choose promising investment projects in the mining and metals industries,” Renova said in a statement.”The aim is to explore and develop new mines as well as set up companies with high-quality production.”Vasily Verbin, Renova’s spokesman, said there were still no concrete projects in the pipeline.”It’s too early to say,” he said.Renova, set up just months before the Soviet collapse in 1991, is an investment house controlling Russia’s second-biggest aluminium producer, SUAL.Vekselberg also co-heads TNK-BP, a Russian joint venture of Britain’s BP and one of the country’s biggest oil firms.Vekselberg has been broadening his ties with Western mining partners recently.Last weekend, he said US Alcoa might take part in SUAL’s US$2,1 billion (N$12,6 billion) Komi aluminium project in northern Russia.He had earlier hired one of the mining industry’s biggest deal makers, Brian Gilbertson, as non-executive director of one of SUAL’s holding companies to help better position the company to tap global capital markets.SUAL and Britain’s Fleming Family and Partners, a private group owned by the Scottish banking dynasty, also want their joint venture, SUAL International, to become a global mining group to rival big names such as BHP Billiton or Rio Tinto.-Nampa-Reuters