Mechel Announces 1H 2010 Operational Results
Moscow, Russia – July 21, 2010 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces 1H 2010 operational results.
* Including anthracites and PCI.
**Some of the steam coals mined are counted as PCI and included into the “Various types of coal for steel production” line.
Yevgeny Mikhel, Mechel OAO’s Chief Executive Officer, commented on the company’s 1H 2010 operational results:
“Our major markets have demonstrated steady growth during the first six months of 2010. We have done our best to satisfy the existing demand. As a result, coking coal concentrate production increased by 29% in 2Q compared to 1Q, output of coal for steel production rose by 111%, growth in steel output totaled 7%, and hardware production grew by 21%.
Arrangements aimed at production development are in full swing at our mining and steel divisions. In particular, Mechel’s mining division is actively carrying out stripping works and purchasing new equipment and spare parts. These efforts allowed Southern Kuzbass and Yakutugol not only to reach their precrisis monthly production levels but also to exceed them as early as in May 2010.
Our steel division launches new production lines and enters new markets. Our two acquisitions – Laminorul Braila, a Romanian steel mill, and Ramateks, a Turkish steel trader, as well as a number of storage facilities launched in Eastern and Western Europe help us to strengthen the company’s strategic position on the steel markets of the European Union and the Balkans.
On the whole, looking at production dynamics in 1Q and 2Q 2010, we may see that the company has overcome the consequences of the global economic recession. Today we continue implementation of our strategic investment projects which are expected to substantially boost our plants’ production capacity.”