Mechel Reports Delivery of First Cargo of Quartzites From Uvatsk Deposit
MOSCOW, April 11, 2013 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL), one of the
leading Russian mining and metals companies, reports the launch of constant
operation at the Uvatsk quartzite deposit and delivery of the first batch of
raw materials from the deposit to Bratsk Ferroalloy Plant OAO.
Approximately 680 tonnes of quartzite mined at the deposit were delivered to
Bratsk Ferroalloy Plant in March 2013. Implementation of the Uvatsk deposit
development project took some four years, using Mechel's ferroalloys
division's own resources and funds.
"This event is a key stage in the Uvatsk deposit's successful development. In
the second half of 2013, Bratsk Ferroalloy Plant will already be fully
internally sourced with ore needed to produce high-quality ferrosilicon with
65-75% silicon content. This will enforce the plant's independence of external
sources of raw materials and obtain its own high-quality raw materials cheaper
by 25-30% than current market prices. This will also have a positive impact on
the economic and financial results of Bratsk Ferroalloy Plant, which is one of
the most successful enterprises in Mechel Group's ferroalloy segment," said
Sergey Zhilyakov, Chief Executive Officer of Mechel Ferroalloys Management
Bratsk Ferroalloy Plant won the tender for the rights to utilize the subsoil
plot on the Uvatsk deposit of quartzite and quartz sandstones in May 2008. The
Uvatsk deposit is located in the Irkutsk Region, approximately 24 kilometers
from the town of Nizhneudinsk.
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.
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
CONTACT: Mechel OAO
Tel: + 7 495 221 88 88
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