core sector communique

Mechel Announces Launch of New U.S.-Based Coal Processing  Plant

Keystone, West Virginia, USA – December 13, 2010 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and steel companies, announces the launch of its U.S.-based subsidiary Mechel Bluestone’s newest coal processing plant for washing coal mined at the Keystone Operations near Keystone, West Virginia. The K2 plant, worth 12 million dollars in investments, can process annually up to 3 million tonnes of run-of-mine coal. Annual production volume at the first stage is expected to exceed 1 million tonnes. The plant can efficiently recover high-quality low-volatile coking coal from high reject material common to thin-seam mining operations. The launch will allow Mechel Bluestone to double its production of low-volatile coking coal. “The plant was built to meet all modern requirements, its every production process is highly computerized, including computer-aided coal quality control. The Keystone low-volatile metallurgical coal is of a very high quality and is in great demand throughout the world. Our plans to step up coal production required us to boost processing volumes as well,” said Boris Nikishichev, CEO of Mechel Mining Management Company. *** 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.