Chelyabinsk, Russia – November 23, 2005 – Mechel reports that its subsidiary, Chelyabinsk Metallurgical Plant, has had an accident. No deaths or injuries at the plant resulted. Production at the plant, with the except of coke production, has been halted.

Late last night a local water pump station failed, interrupting the supply of water to Chelyabinsk Metallurgical Plant.

Production at Chelyabinsk Metallurgical Plant was stopped. Technical services of the plant have taken all possible measures to limit any negative consequences for the plant’s equipment.

Production at the plant will resume the production cycle by tomorrow, and will be fully restarted within the next two days.

“We are thankful that there were no injuries associated with this incident. All resources at our disposal are currently being used to restore the production to full capacity and to minimize the effects of this incident”, said Mechel’s CEO Vladimir Iorich.