Evraz Plc Amendment of transshipment agreement (3696J)
August 16 2019 - 11:00AM
UK Regulatory
TIDMEVR
RNS Number : 3696J
Evraz Plc
16 August 2019
AMENDMENT OF TRANSSHIPMENT AGREEMENT WITH NAKHODKA TRADE SEA
PORT
EVRAZ plc ("EVRAZ", the "Company" and together with its
subsidiaries, the "Group") announces today that it has signed a
Deed of Amendment ("Transaction") in relation to the Long-Term
Transshipment Agreement ("LTA") between East Metals AG (the
"EMAG"), a fully owned subsidiary of the Company and Nakhodka Trade
Sea Port (the "Nakhodka Port") previously concluded as a part of
the disposal of Nakhodka Port in May 2017.
In the Transaction, parties have agreed to increase rates for
excess volumes of transshipped coal for future periods.
Key Commercial Highlights
The parties have determined and agreed on new higher rates going
forward in the view of the increased demand for transshipment
through Far East ports of Russia.
TERM 2018 2019
Rates for transshipment of excess Up to 373,000 metric US$19.0
volumes of coal (exceedingagreed tonnes - US$16.2
quotas) Over 373,000 metric
tonnes - US$18.0
--------------------- --------
The excess coal volume is subject to a cap of approximately 2.7
million tonnes. New rates are comparable with the rates set by the
Nakhodka Port for the third parties. This will allow EVRAZ to
transship additional volumes of coal to the Far East in line with
its current demand.
Pursuant to UK Listing Authority ("UKLA") Listing Rule 11.1.4R,
Nakhodka Port is classified as a related party of EVRAZ, due to its
direct shareholders also being substantial shareholders in the
Company. The Transaction, therefore, constitutes a smaller related
party transaction as defined under UKLA Listing Rule 11.1.10R and
EVRAZ has accordingly obtained a written confirmation from a
sponsor that the terms of the transaction are fair and reasonable
as far as shareholders of EVRAZ are concerned.
Background
As part of the Nakhodka Port disposal to Lanebrook Limited
(EVRAZ' majority shareholder at the date of the disposal) on 3 May
2017 and which was approved by the independent shareholders of the
Company on 23 May 2017, EMAG, a fully owned subsidiary of the
Company , entered into a LTA with the Nakhodka Port. EMAG took the
obligation to ship certain volumes of coal and steel products
through the Nakhodka Port for five years at fixed rates, secured by
a "take-or-pay" clause. Further details of the LTA can be found in
the Shareholder Circular which is available on EVRAZ's website
https://www.evraz.com/en/investors/shareholders/gm/#2018
On 27 December 2018, the Board of Directors approved the first
Deed of Amendment in relation to: (i) excess volume of coal and
(ii) rates for such excess volumes to be added to the Tariff; these
rates are subject to annual adjustment to be made by the parties
though bona fide negotiations.
For further information:
Media Relations:
London: +44 207 832 8998
Moscow: +7 495 937 6871
media@evraz.com
Investor Relations:
London: +44 207 832 8990
Moscow: +7 495 232 1370
ir@evraz.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
AGRBDGDISDBBGCL
(END) Dow Jones Newswires
August 16, 2019 11:00 ET (15:00 GMT)
Evraz (LSE:EVR)
Historical Stock Chart
From May 2024 to Jun 2024
Evraz (LSE:EVR)
Historical Stock Chart
From Jun 2023 to Jun 2024