Evraz Buys Stake in Australian Miner

Evraz Group, a steelmaker partly owned by billionaire Roman Abramovich, bought a 16 percent stake in Australian firm Cape Lambert Iron Ore, potentially derailing a bid to sell the company's mine to China.

Tony Sage, a director in Cape Lambert, said Thursday by phone that Evraz bought the stake. "At this stage, there has been no discussion of a bid or the price of a bid."

Cape Lambert agreed in February to sell its iron-ore project to China Metallurgical Group for 400 million Australian dollars ($391 million).

"Evraz is building a global business, and their strategic objective is to" meet all their own iron-ore needs, said UralSib analyst Michael Kavanagh. "One would imagine they'd go for a full takeover. It's a first step into Australia."

Cape Lambert, which disclosed the purchase Wednesday without naming the buyer, jumped 8.9 percent to close at a record on the Australian stock exchange.