Mechel Reports Review of Subsoil License Conditions for Elga Deposit
MOSCOW, June 24, 2013 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces the Federal Subsoil Resources Management Agency approved the revised schedule for the works under the subsoil license agreement for development of the Elga coal deposit.
According to the revised license conditions, the first stage of the 9-million-tonne washing complex's construction must be completed no later than August 1, 2017. The mining enterprise's first phase — with no less than a 9-million-tonne coal mining annual capacity — must reach design capacity by no later than August 1, 2018.
The mining enterprise's second phase with an annual production capacity of no less than 18 million tonnes must reach design capacity by the end of 2021.
"Now that we have built the Elga deposit's entire primary infrastructure required to bring the coal complex to the industrial level of producing and washing coal, the license's revision creates more comfortable conditions for Mechel to increase production. The new subsoil license conditions enable us to implement the project step by step, launching its facilities in full accordance with quality standards and on schedule required by construction plans," Mechel OAO's Chief Executive Officer Evgeny Mikhel noted.
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.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our Form 20-F. These documents contain and identify important factors, including those contained in the section captioned "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.