Tuesday, February 28, 2012

Mechel Reports Suspension of Coal Mining at Southern Kuzbass Coal Company’s New-Olzherassk Underground Mine


Moscow, Russia — February 27, 2012 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces that coal mining at Southern Kuzbass Coal Company OAO’s New-Olzherassk Underground mine’s long wall face # 21-1-7 has been temporarily halted due to coal self-heating.
High levels of carbon monoxide were registered in New-Olzherassk Underground mine’s long wall face # 21-1-7, which is proof of coal self-heating. Mining operations are currently suspended.
Southern Kuzbass Coal Company OAO’s experts are working on measures to eliminate self-heating. Remote sampling yields prompt information on the gas situation in the production area, which is injected with a nitrogen-based foam.
The mine infrastructure, including its transport, ventilation system, dewatering, power facilities and roadheaders, is in working condition and safe.
The timing for resumption of mining will be determined once the project for eliminating self-heating is completed.
Suspension of the mine’s long wall face # 21-1-7 will not cause delay in coal deliveries to customers since there is enough coal at the New-Olzherassk Underground mine warehouse to ensure uninterrupted deliveries within the company’s existing contractual obligations.
This year New-Olzherassk mine has mined over 250,000 tonnes of coal. The coal produced at the mine is mostly used to produce PCI. 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.

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