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Mechel Announces First Results for Elga Coal Complex

09/07/2011 - Mechel’s Elginsky open pit yielded some 21,000 tonnes of coal in less than a month since the start of mining at the company’s Elga deposit in August.

Mechel OAO has reported the first mining results for Yakutugol Holding Company OAO’s Elga Coal Complex.
 
Mining at the Elga deposit started in August as planned. Since then, the Elginsky open pit yielded some 21,000 tonnes of coal in less than a month.
 
Mechel timed the start of mining to the commissioning of the Ulak-Elga railway from point 1 to the 209-kilometer point, with the railway planned to be fully completed in December 2011. Until then, the company plans to transport coal by heavy-duty trucks from the open pit to the 209-kilometer point. The 209-kilometer point is equipped with a transshipment station to transport coal further by rail.
 
“We are glad to report the commissioning of the Ulak-Elga railway up to the 209 kilometer point and the successful start of the mining process at the Elga open pit in accordance with earlier plans, as well as announce the first results of the complex’s work,” commented Igor Zyuzin, Chairman of Mechel OAO’s Board of Directors and Mechel Mining OAO’s Chief Executive Officer. “Developing the deposit is a major strategic project not only for our company, but for the whole Far East. By implementing the Elga project, Mechel is introducing a project unique for Russian business — a private railway and an open pit with one of the world’s largest coking coal production volumes.
 
“Commissioning of the Elga open pit and the railway linking it to the Baikal-Amur Mainline will prove that Mechel OAO is one of the few companies in the world that can implement large-scale coking coal mining projects from scratch,” continued Zyuzin. “Mining this deposit will enable us to complement our coking coal product range and reinforce our international positions among leading producers of metallurgical coals.”
 
One work shift at the Elga Coal Complex currently employs some 120 personnel, with over 75 equipment units involved in the mining process. In addition to mining, leveling operation of the chief mine site is being held at the open pit.
 
Mechel, one of the leading Russian companies, conducts business in four segments: mining, steel, ferroalloy and power. Mechel unites producers of coal, iron ore concentrate, nickel, steel, ferrochrome, ferrosilicon, rolled products, hardware, heat and electric power with products that are marketed domestically and internationally.
 
Mechel Mining OAO is Russia’s largest producer of coking coal, as well as one of the world’s largest producers of coking coal concentrate. The company focuses on producing and marketing coking coal concentrate, iron ore concentrate and coke.