Sept. 29 (Bloomberg) -- OAO Severstal, Russia’s second- biggest steelmaker, said it will separate its Nord Gold unit, after shelving a plan for an initial public offering this year.
“Strategically we made a decision to separate gold,” Chief Executive Officer Alexey Mordashov said today in an interview in London. “It has no synergy with steel and steel- related mining.”
Nord Gold postponed plans for an IPO in London in February, citing “market conditions.”
Severstal has a “strong intention” to decide on when to separate the unit this year, Mordashov said, adding that the timing depends on the market.
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