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Mechel Reports Progress on Railway Spur to Elga Coal Deposit

Mechel OAO announces that its Yakutugol HC OAO coal mining subsidiary continues active operations in constructing the road to the Elga coal deposit.
 
At present, traffic from the Ulak station can only proceed 270 km toward the Elga deposit; ultimately, the railroad will extend to a total length of 315 km. To date, 80 km of the access motor road have been repaired, 143 km of motor roadbed have been constructed, and 37 km of pioneer road have been constructed that now enable traffic.
 
The company reports that 59 km of the railroad has now been repaired. Ballasting and surfacing of rails still needs to be completed in order to make this railroad section completely ready, however, severe climate conditions and low temperatures have delayed completion of this procedure until the spring.
 
Active construction of the bridgeworks and laying of water-drain pipe are currently underway along the entire railroad track section, with 24 railroad bridges erected to date with up to 99% readiness and more than 100 water drain pipes laid. The bridge on the 61st kilometer is now completely constructed, thus enabling the builders to continue laying the track superstructure. A total of 2 km of rail and tie network was laid in January 2009, making motor traffic possible across the Yalta and Ugan rivers on the 79th km and 84th km, respectively. Builders now need to erect eight additional highway bridges across the Undytkan, Undytyn, Tuksani, Algama, Chapa, Karaslak, and Taik rivers.
 
One hundred and twenty-two mechanized complexes are employed in construction of the railway spur track, many equipped with bulldozers, excavators, vibrorollers, graders, and dump trucks. Over 1000 units of road-building machinery are being employed at the project this moment. Transstroy Engineering Corp. ZAO, serving as general contractor for the project, is supported by approximately 40 contractors and subcontractors from various parts of Russia are performing the work, including the companies from Khabarovsk, Moscow, Yekaterinburg, Tomsk, Saratov, Odintsovo, Chita, Aldan, and Irkutsk.
 
The work to construct the road is being strictly controlled in terms of quality and scope. Regular on-site inspections of the construction and installation works have been conducted by specialists of Yakutugol HC OAO’s Directorate for the Elga Deposit Development.
 
Yakutugol HC OAO’s own machinery will be allocated for this project, as well as equipment from Mechel Mining OAO’s subsidiaries, Korshunov Mining Plant OAO and Southern Kuzbass OAO. Approximately 30 machinery units will be allocated in the first stage of this project, with relocation of the equipment to the Upper Ulak station scheduled to start in mid-February.
 
Mechel, one of the leading Russian mining and metals companies, unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, hardware, heat, and electric power. Its business includes four segments—mining, steel, ferroalloys and power—and its products are marketed domestically and internationally.