Mechel Reports Resumption of Mining at Sibirginsk MineMoscow, Russia — May 4, 2012 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, reports that mining at Southern Kuzbass Coal Company OAO’s Sibirginsk Mine was resumed.
Assembly of a new mechanized complex at Sibirginsk Mine’s long wall face # 3-1-9 was completed. Mineable reserves of coal at the long wall face are estimated at 1.5 million tonnes, with the breakage face due to produce some 100,000 tonnes monthly. All required documents for the long wall face’s operations have been obtained.
Mining at Southern Kuzbass Coal Company OAO’s Sibirginsk Mine was suspended in June 2011 due to coal self-heating in the mined-out area.
“Thanks to the efforts of Southern Kuzbass Coal Company OAO’s experts, a lot of work was done on eliminating the reasons for the mine’s suspension in 2011, assembling the new high-performance equipment, ensuring mining safety and resuming production. Re-launching operations at the mine will allow us to increase production and sales of coking coal, which should have positive impact on this year’s results for the whole of the company’s mining division,” Mechel Mining Management Company OOO’s Chief Executive Officer Boris Nikishichev commented.
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Mechel is one of the leading Russian companies. Its business includes four segments: mining, steel, ferroalloy and power. Mechel unites producers of coal, iron ore concentrate, nickel, ferrochrome, ferrosilicon, steel, rolled products, hardware, heat and electric power. Mechel products are marketed domestically and internationally.
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