- Severstal (CHMF.MM: Quote, Profile, Research), Russia's largest steel maker, has submitted a bid to acquire a coal mining complex in the United States, the company said in a prospectus for a loan participation notes programme. "The group is considering the acquisition of coal mining assets in the United States, aimed at securing long-term supply of coal to its expanded operations in the United States and has recently submitted a bid for a coal mining complex in the United States," Severstal said in the document, dated June 23.

The company did not identify the coal complex.

Severstal, controlled by billionaire Alexei Mordashov, has acquired several underperforming U.S. steel assets at knockdown prices in recent years as Russian companies have accumulated nearly 10 percent of U.S. steelmaking capacity.

The company owns the former Rouge Steel plant, once the in-house steelmaking unit for Ford Motor Co (F.N: Quote, Profile, Research), and this year acquired the Sparrows Point mill in Baltimore, Maryland.

Severstal also owns the modern SeverCorr mill in Mississippi and is pursuing a bid for Esmark Inc (ESMK. Quote, Profile, Research), which owns steel maker Wheeling-Pittsburgh, despite being rebuffed in its $1.24 billion takeover offer.

Elsewhere in the prospectus, Severstal said it "may decide to submit a bid for one or more (U.S.) coal mining assets in the near term, possibly as early as June or July 2008".

The company already owns coking coal assets in Russia, including the Vorkutaugol complex in the Arctic Circle.

Severstal also said it planned to invest $16.3 billion from 2008 to 2012 as part of its capital expenditure programme.

The company said it planned to expand in Russia and the former Soviet Union, as well as in markets where demand is high. "The group's acquisition strategy is primarily focused on the CIS and the United States, although as the United States market is relatively mature and consolidated, opportunities in that market are not expected to arise frequently," it said.

"The group may also acquire or develop steel operations in regions expected to provide high levels of growth in demand, particularly where low-cost sources of raw materials and other production inputs are readily available."