Mechel Announces Launch of Coke-Oven Battery #5 at Mechel-Coke

Chelyabinsk, Russia — December 21, 2011 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces the launch of the reconstructed coke-oven battery #5 at Mechel Mining OAO’s subsidiary Mechel-Coke OOO.

The launch of the facility means that all of Mechel-Coke OOO’s eight coke-oven batteries are now operational. This enables the company to increase production of coke and chemicals and ensure the needs and resource independence for Mechel Group’s Chelyabinsk Metallurgical Plant and Southern Urals Nickel Plant.

The battery’s annual capacity is 470,000 tonnes of coke, triple the unit’s capacity before it was halted for reconstruction. Once the battery reaches full load, Mechel-Coke will produce over 3.1 million tonnes of coke a year, boosting production by 17%.

As part of the battery’s reconstruction, the plant introduced a computerized central control system of the technological process for all of coke shop #2’s coke-oven batteries.

Special attention was paid to environmental protection measures, which include an autonomous system for dust-free coke distribution, a smoke-free oven loading system, a cap pneumatic compression system for the battery’s gas exhaust columns, highly gastight coke-oven doors, and an automated monitoring system for coke gas combustion processes.

Reconstruction of coke-oven battery #5’s facilities cost a total of 1.8 billion rubles (some 56.2 million US dollars*).

“Gradual modernization of the plant’s production facilities and minimization of its impact on the environment are top priorities for Mechel-Coke OOO’s development program. Over the past five years, four coke-oven batteries were renovated, and a package of environmental protection measures installed. This will enforce our steelmaking enterprises’ independence from outside resources and let us concentrate on producing high-quality coke using the Elga deposit’s coking coal, among others,” Mechel OAO’s Chairman of the Board of Directors Igor Zyuzin noted.

* According to the Russian Central Bank exchange rate of 32.05 RUR/$ as of December 21, 2011.

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.