Aug 12. Severstal has acquired 100% of gold producer Balazhal in Kazakhstan, the company said in a press release. Total gold reserves of Belezhal are estimated at 20 tons and could be increased to 30-40 tons. One of Severstal's subsidiaries acted as the buyer of the asset. The company did not disclose the value of the transaction or the name of the seller. The asset was folded into Severstal's mining division – Severstal-Resource. In 2004 a mine was built at the deposit and a processing facility using heap leaching technology. However, in late 2006 output was suspended due to financial problems. According to the press release, Severstal-Resource plans to resume output by 2009 and ramp it up to 1.5-2 tons per year in the coming years. "The Balazhal mine is attractive, since it can be used to restore output" – said director of gold segment of Severstal-Resource Nikolai Zelensky. "The acquisition of this asset is another step toward strengthening Severstal's gold business in Kazakhstan – a strategically important region for us". Severstal owns the Suzdal and Zherek mines in Kazakhstan, earlier owned by Irish Celtic Resources.