Moscow, Russia — February 21, 2012 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, reports the launch of a chrome briquette producing workshop at Tikhvin Ferroalloy Plant, which is part of Mechel’s ferroalloys division.
The launch of the workshop producing chrome briquettes out of concentrate of small-fraction chrome ore will increase the furnaces’ capacity from 12 to 14.4 MW, significantly broaden the plant’s ore base and fully use the dust formed during the gas purification process.
The briquette-producing workshop will have the monthly production capacity of 5,500 tonnes of chrome briquettes.
Investment in the project totaled over 350 million rubles (nearly 11.8 million US dollars*).
Mechel Ferroalloys Management OOO’s Chief Executive Officer Gennady Ovchinnikov noted: “Chrome briquette production will not only increase output of high-carbon ferrochrome to the maximum by raising the furnaces’ capacity, but will also ensure ecological safety as we utilize the chrome-containing dust from gas purification. The chrome briquette production will shortly be up to its designed capacity.”
* Based upon the Russian Central Bank exchange rate of 29.78 RUR/$ as of February 21, 2012.