A-Property is buying Russia's largest anthracite producer Sibanthracite Group and has already signed an agreement with the miner's owner, Alltek Group.
Sibanthracite Group will remain an independent company under the terms of the deal, which stipulates that long-term contracts will be signed with senior managers at the firm, and that they will retain shares in the company.
Further details about the acquisition will be disclosed after the deal closes, A-Property says.
Sibanthracite Group owns the leading coal companies in the Novosibirsk region, including Siberian Anthracite, Vostochny opencast and Kiyzassky opencast in the Kemerovo region, which mines low-volatile bituminous T-grade coal. The group produced 17.3mn t of coal last year, down from 23.3mn t in 2019, according to data from the Russian energy ministry's state information agency CDU TEK.
Earlier this month, Sibanthracite Group and Vostokugol, also owned by Alltech, sold their 50pc shares in the far eastern port of Vera in Russia's Primorsky region and the Ogodzhinskoye coal deposit to the owners of the other 50pc stakes in these assets, which are associated with A-Property.
A-Property bought Russian coal producer Elgaugol from Mechel and Gazprombank in April 2020. Elgaugol is developing the Elga coal deposit in south Yakutia and has reserves of more than 2.2bn t of Zh, GZh and KZh-grade coking coal. The firm produced around 7mn t of metallurgical coal in 2020, up from 4.3mn t a year earlier.
The deals will make A-Property Russia's third-largest coal producer after Suek and Kuzbassrazrezugol, according to some market participants.
Find more news, price information and market analysis on Russian coal exports in Argus Russian Coal report.
