Press Releases

Mechel reports its operational results for the nine months of 2005

Moscow, Russia – October, 2005 – Mechel OAO (NYSE: MTL), one of the leading vertically-integrated mining and metals companies, announced today its operational results for the nine months of 2005.

Product Nine months of 2005, thousand tonnes Nine months of 2005 as compared to nine months of 2004, %

Coal

11,670

+ 2

 

Coking Coal

6,472

- 5

 

Steam Coal

5,198

+ 11

 

Iron Ore Concentrate

3,374

+ 20

 

Nickel

9

- 8

 

Coke

1,963

- 11

 

Pig Iron

2,475

- 10

 

Steel

4,420

-3

 

Rolled Products

3,450

+ 3

 

Semi-Finished Products

1,362

+ 27

 

Long Products

1,876

- 7

 

Flat Products

212

- 21

 

Forgings

63

- 15

 

Stampings

77

+ 82

 

Hardware

441

+ 4

 

 


Mechel’s Chief Executive Officer Vladimir Iorich commented operational results for the first nine months of 2005: “The negative trends we witnessed in major mining and steel markets in the second quarter continued to affect our nine-month production. The slowdown in the coking coal market, caused by a decrease in the output of a number of Russian coal consumers, prompted our shift to increasing steam coal production. In the steel segment, we maintained our rolled product output by optimizing usage ratios, while reducing raw steel, pig iron, and coke output. We will continue to further improve usage ratios by putting our new continuous casting facilities into operation. At the same time we see positive market trends starting in September, as mining and steel products output has begun to pick up, and expect to fully restore production levels across both segments in response to growing demand.”


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Mechel OAO
Irina Ostryakova
Director of Communications
Phone: 7-095-258-18-28
Fax: 7-095-258-18-38
irina.ostryakova@mechel.com



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Mechel is one of the leading Russian mining and metals companies. Mechel unites producers of coal, iron ore, nickel, steel, rolled products, and hardware. Mechel products are marketed domestically and internationally.


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Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our Form 20-F. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.<