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Mechel Announces Signing a Coking Coal Supply Contract

Moscow, Russia – June 09, 2009 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces that its Mechel Trading AG subsidiary has signed a long-term coking coal supply contract with South Korean Hyundai Steel.


In February 2009, visiting South Korea as a member of the Russian delegation headed by the Russian Federation Deputy Prime Minister Igor Sechin, Mechel OAO Chief Executive Officer Igor Zyuzin signed the agreement with South Korean Hyundai Steel to supply K-9 grade coking coal mined from Neryungri open pit.

On June 9, 2009, under the agreement a commercial contract has been concluded between Mechel Trading AG, Mechel’s international sales company, and South Korean Hyundai Steel Company.

Pursuant to the contract, coal will be supplied during the next five years starting from April 1, 2010. The supply volumes will reach 200,000 tonnes p.a.

The coal deliveries to South Korea will be performed on FOB basis via Mechel’s trade Port Posiet subsidiary.

“Signing the commercial contract became another stage in developing partnership relations between Mechel and Hyundai Steel. In the context of current economic situation, export coking coal supplies became especially important to ensure utilization of our mining facilities. I am confident that today’s signing will give additional impetus to the long-term and mutually beneficial relations between our companies,” Mechel OAO Senior Vice President Vladimir Polin commented.


Mechel OAO
Ilya Zhitomirsky
Phone: + 7 495 221 88 88


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, steel, ferrochrome, ferrosilicon, rolled products, hardware, heat and electric power. Mechel products are marketed domestically and internationally.


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.