Mechel Announces Signing Long-Term Partnership Agreement with BelAZ
Moscow, Russia — November 28, 2011 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces the signing of a long-term partnership agreement with BelAZ OAO during the session of the Supreme State Council of the Union State of Russia and Belarus held on the level of heads of state.
Mechel OAO’s Chairman of the Board of Directors Igor Zyuzin and BelAZ OAO’s General Director Pyotr Parkhomchik signed the long-term partnership agreement in the presence of Russian President Dmitry Medvedev, Belarusian President Alexander Lukashenko, Russian Prime Minister Vladimir Putin, Belarusian Prime Minister Mikhail Myasnikovich, Chairman of the Federation Council of the Russian Federation’s Federal Assembly Valentina Matviyenko, Chairman of the Republic Council of the Belarus Republic’s National Assembly Anatoly Rubinov, Chairman of the State Duma of the Russian Federation’s Federal Assembly Boris Gryzlov and Chairman of the Chamber of Representatives of the Belarus Republic’s National Assembly Vladimir Andreychenko.
Mechel OAO and BelAZ OAO agreed in principle to sign the agreement for a 10-year partnership in August 2011, when Mechel OAO’s delegation headed by the company’s Chairman of the Board of Directors Igor Zyuzin visited Minsk by Belarusian Prime Minister Mikhail Myasnikovich’s invitation to discuss ways to improve Mechel Group’s ties with Belarusian enterprises.
The long-term partnership agreement provides for supplies of BelAZ-produced mining dump trucks to Mechel’s enterprises, supplies of spare parts for those trucks, setting up production of cargo platforms for BelAZ mining dump trucks at Mechel’s plants, and certification of a Mechel subsidiary as one of BelAZ’s service centers in the Russian Federation.
Mechel Group’s mining division, which is one of BelAZ’s chief customers in Russia, plans to acquire mining dump trucks mainly for use at the Elga coal deposit with estimated reserves of 2.2 billion tonnes of coking coal, which is located in the southeastern part of the Republic of Sakha (Yakutia). Mining at this deposit, which is one of the world’s largest, commenced in August 2011.
“The signed agreement consolidates reliable and fruitful ties between Mechel and Belarusian Autoworks. The attention and support given to our companies’ partnership at the highest level are proof of the strategic importance of our joint efforts. I consider this a key event and the first step which will help streamline and develop Mechel OAO’s friendly ties with our current and future partners within the framework of the Union State and the Eurasian Economic Community. This is particularly important for Mechel Group, as our company owns assets in Kazakhstan and is a longstanding and efficient partner for companies based in other member-states of the Eurasian Economic Community,” Mechel OAO’s Chairman of the Board of Directors Igor Zyuzin said.
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.