LSR Group entered into the preliminary agreement to acquire 100% of Ravan LLC, owner of a sand deposit in Tosnensky District, the Leningrad region. The acquisition has been approved by the Federal Antimonopoly Service of the Russian Federation.
The proved reserves of the deposit amount to approximately 7m m3. The mining process is to begin in summer 2015. As a result of the transaction the sand reserves of LSR Group will reach 200m m3.
The deposit is located in close proximity to the construction site of the high-speed motorway Moscow-Saint-Petersburg (M11) which facilitates logistics significantly. The expected extraction volumes are 0.5m m3 in 2015, and 1m m3 starting from 2016.
Vasily Kostritsa, Managing Director of Aggregates & Ready-mix concrete, comments:
“Construction of M11 highway will require a great amount of high-quality sand which is currently not available close to the construction site. We acquired the Ravan deposit because its sand is ideal for road construction. We have another three sand deposits in Tosnensky and Vsevolozhsky districts.”
For more information please contact:
LSR Group Press Service