NERYUNGRI, Russia, May 12 /PRNewswire/ --
Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces that its Yakutugol OAO coal mining subsidiary has acquired new equipment for its Neryungri Coal Processing Plant in line with its capital expenditure program.
The acquisition of the U.S.-manufactured Artrita coal mill will be used for crushing and coal dust preparation in the processing plant's drying units. The Artrita coal mill will replace the plant's depreciated equipment and is the third coal mill purchased by Yakutugol OAO. Two new Artrita coal mills were previously installed replacing the obsolete mills in 2007.
The equipment has high performance characteristics and reliability that meet the processing plant specialists' requirements. The new mill will be installed by Yakutugol OAO's Mechanical and Repair Plant specialists. The equipment is planned for commissioning in mid-June 2008. The project will cost approximately RUR27.00 million (approximately US$1.2 million).
"This investment supports the objectives being pursued by our coal subsidiary in increasing its coal output. We need to ensure the processing plant's reliable operation, which depends on the installed equipment's serviceability and productivity. Replacing and modernizing obsolete machinery will enable the subsidiary to achieve steady and efficient operation and avoid technical outages," Mechel Management OOO Chief Executive Officer Vladimir Polin commented.
Mechel is one of the leading Russian companies. Its business includes three segments: mining, steel, and power. Mechel unites producers of coal, iron ore concentrate, nickel, 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.
Ilya Zhitomirsky of Mechel OAO, +7-495-221-88-88, email@example.com