<article><p class="lead">Ukrainian integrated steelmaker and mining firm Metinvest has approached the Hungarian government declaring its interest in Dunaferr.</p><p>In a letter to Hungarian Prime Minister Viktor Orban, Metinvest chief executive Yuriy Ryzhenkov said Dunaferr "always was and remains on our shortlist and we are still considering it as a potential valuable addition to the group".</p><p>"We are fully confident that as part of the Metinvest family, Dunaferr will greatly contribute to the Hungarian national economy," he added.</p><p>Dunaferr provides a number of synergies for Metinvest and suits the strategy of the group, allowing it to fully utilise its raw materials, Ryzhenkov said. Metinvest could supply it with iron ore concentrate, pellets and coal. </p><p>Metinvest previously did due diligence on Dunaferr in 2018-19.</p><p>The company would need an investment of at least €150mn to restart and keep operations running at 60pc of utilisation, and also needs a "significant investment programme to bring it in compliance with the EU environmental policies aimed at reduction of carbon emissions by 55pc by 2030", Ryzhenkov suggested.</p><p>Metinvest has also been talking to other producers about potential acquisitions. Late last year, the company had <a target="_blank" href="https://www.argusmedia.com/en/news/2394791-metinvest-in-talks-to-acquire-us-steel-kosice">preliminary talks with US Steel over the acquisition of its Kosice plant in Slovakia</a>, and has also reportedly expressed interest in Liberty Galati.</p><p>As well as using group raw materials, a European asset would give Metinvest's re-rolling assets captive slab supply. </p><p>Dunaferr went into liquidation in December after the government changed its bankruptcy laws, colloquially called "the Dunaferr decree" by some. </p><p>Liberty Steel has been supplying coal to Dunaferr to keep the coke ovens working and is also interested in acquiring the company. A Liberty delegation visited Dunaferr on Tuesday and the company has established a legal entity in the country, Liberty Central Europe.</p><p>Liberty had looked to acquire Dunaferr shortly before its main financier, Greensill, went into administration, but severed talks quickly afterwards. Liberty boss Sanjeev Gupta had met with Hungarian politicians to discuss the acquisition. </p><p class="bylines">By Colin Richardson</p></article>
