Mechel Reports Shipment of First Iron Ore Batch from Sivaglinsky DepositNeryungri, Russia – May 2, 2023 – Mechel PAO (MOEX: MTLR), one of the leading Russian mining and metals companies, reports shipping out the first batch of iron ore mined at South Yakutia’s Sivaglinsky deposit.
The first 4,000-tonne batch of ore was shipped from the Amur-Yakutia Mainline’s Tit station to Chelyabinsk Metallurgical Plant, also part of Mechel Group.
By this year’s end, Mechel plans to mine approximately 900,000 tonnes of high-quality ore at the Sivaglinsky deposit. Starting in 2024, mining is due to reach 1,25 million tonnes of blast-furnace and sinter ore annually.
The Sivarglinsky deposit’s operator is Yakut Ore Company OOO, which is part of Mechel Group’s mining division. The deposit development project is part of Southern Yakutia advance development zone. Mechel will invest 2.1 billion rubles in developing the deposit, creating over 450 new jobs.
“This shipment of the first batch of iron ore marks the beginning of the Sivaglinsky deposit’s commercial operation, and the deposit’s development is a greenfield project for us. This is a great and significant event for Yakutia and Russia’s entire mining and metallurgical complex. Our country’s steelmakers, primarily Chelyabinsk Metallurgical Plant, will be this ore’s key consumers. The freight train of 56 wagons laden with blast-furnace ore that does not need processing is already on its way to Chelyabinsk. In about three weeks this ore will be used in pig iron production,” Mechel PAO’s Chief Executive Officer Oleg Korzhov commented.
Note for editors:
The Sivaglinsky iron ore deposit is located 135 kilometers north of Neryungri and 9 kilometers away from the Amur-Yakutia Mainline that is linked to the Baikal-Amur Mainline and the Trans-Siberian Railway. The Sivaglinsky deposit is 2.2 square kilometers in size. Its open-pit reserves are estimated at approximately 21 million tonnes of ore with iron content of 48.6-53.3%.
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Mechel is an international mining and steel company. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and electric power. All of its enterprises work in a single production chain, from raw materials to high value-added products.
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.