Moscow, Russia — December 13, 2011 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces that Southern Kuzbass Coal Company’s washing plant produced first coking coal concentrate out of the Elga deposit’s coal.
A sample lot of some 4,000 tonnes of Elga’s coking coal was washed at Southern Kuzbass Coal Company OAO’s Sibir plant. The concentrate obtained by industrial washing has qualities which rate the Elga deposit’s coals with high-value grades of caking coals.
The concentrate produced at Sibir was sent to Mechel-Coke OOO for test industrial coking Using coal of this quality allows production of coke with high structural durability, which in its turn helps improve technological and economic results of blast furnace production.
Results of the coking coal washing tests will enable a better understanding of the technological specifics of working with Elga coal. This information will be used in designing and constructing Elga Coal Complex’s permanent washing plant.
“Use of the Elga deposit’s coking coal will provide Mechel’s coke and chemical facilities with fully internally-sourced fuel, which will enable us to significantly improve our coke products’ quality and guarantee our independence from external suppliers. Moreover, Elga Coal Complex’s products will allow Mechel to increase exports of coal grades that are in demand,” Mechel OAO’s Chairman of the Board of Directors Igor Zyuzin noted.
Production at Elga Open Pit began in August 2011. In the first few months the open pit produced only oxidized coals, characterized as steam coals with high calorific value. Since August, the open pit produced some 200,000 tonnes of coal.
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.