OREANDA-NEWS. October 23, 2007. The SCM Group has completed the transaction on acquisition of shares of clay production companies “Druzhkovka Ore Mining” and “Ogneupornerud Fire Clay Mining” (45.38% and 50% accordingly). The purchaser of the shares is UMG (United Minerals Group) Limited (Cyprus) wholly owned by the SCM Group and holding the shares of the SCM Group clay-mining assets.

As the result UMG concentrated 90.58% of shares of “Druzhkovka Ore Mining” and got full consolidation of shares of “Ogneupornerud Fire Clay Mining”. In addition, UMG controls 93.88% of the Charter Fund of “Vesco Ceramic Clay Producer”.

“SCM Company has been a shareholder of clay production companies for years. We can say with certainty that we are very well familiar with peculiarities of this area and we can see the potential for the growth”, - said Oleg Popov, the General Director of SCM. – Till present day the clay-mining assets of the SCM Group presented just several separate companies operating at one market and geographically located not too far from each other. The possibility to manage the operation of the three clay-mining companies from a single center will allow us to realize our potential synergies and we have confidence that this will lead to a significant growth of the business and thus to the growth in its value”.

SCM Company is committed to further development of its business in clay production area considering the interests of the Company’s employees, partners, investors and citizens in the regions of its presence.