Moscow, Russia – September 6, 2005 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces the startup of the second line of the new sinter plant at its subsidiary, Chelyabinsk Metallurgical Plant.
Construction of the new sinter plant is in line with Mechel’s strategic investment program, targeted at improving quality, lowering production costs and overall modernization. The plant will have a total annual capacity of 4.5 million tonnes of sinter once it is brought fully on line, which is expected by the end of this year.
The sinter plant will have four production lines, each line with a capacity of 1,125 million tones. The full commissioning of the new plant is scheduled to happen before the end of the year. The first line was brought to operation this April.
The project will significantly increase Mechel’s ability to internally source its iron ore requirements for its own iron ore mine, Korshunov Mining Plant. The sinter plant, once fully commissioned, is expected to yield cost savings of approximately $70 million annually. The total cost of the project is expected to be approximately $150 million.
“Construction of the new sinter plant will boost further integration of our operating subsidiaries thus increasing the synergetic effect and minimizing the impact of the situation on the metallurgical raw market”, - Mechel’s CEO, Vladimir Iorich, said.
Director of Communications