NERYUNGRI, Russia, May 12 /PRNewswire-FirstCall/ -- Mechel OAO (NYSE:MTL), one of the leading Russian mining and metals companies, announces thatits Yakutugol OAO coal mining subsidiary has acquired new equipment for itsNeryungri Coal Processing Plant in line with its capital expenditure program.
The acquisition of the U.S.-manufactured Artrita coal mill will be usedfor crushing and coal dust preparation in the processing plant's drying units.The Artrita coal mill will replace the plant's depreciated equipment and isthe third coal mill purchased by Yakutugol OAO. Two new Artrita coal millswere previously installed replacing the obsolete mills in 2007.
The equipment has high performance characteristics and reliability thatmeet the processing plant specialists' requirements. The new mill will beinstalled by Yakutugol OAO's Mechanical and Repair Plant specialists. Theequipment is planned for commissioning in mid-June 2008. The project will costapproximately RUR27.00 million (approximately US$1.2 million).
'This investment supports the objectives being pursued by our coalsubsidiary in increasing its coal output. We need to ensure the processingplant's reliable operation, which depends on the installed equipment'sserviceability and productivity. Replacing and modernizing obsolete machinerywill enable the subsidiary to achieve steady and efficient operation and avoidtechnical outages,' Mechel Management OOO Chief Executive Officer VladimirPolin commented.
Mechel is one of the leading Russian companies. Its business includesthree segments: mining, steel, and power. Mechel unites producers of coal,iron ore concentrate, nickel, steel, rolled products, hardware, heat andelectric power. Mechel products are marketed domestically and internationally.
Some of the information in this press release may contain projections orother forward-looking statements regarding future events or the futurefinancial performance of Mechel, as defined in the safe harbor provisions ofthe U.S. Private Securities Litigation Reform Act of 1995. We wish to cautionyou that these statements are only predictions and that actual events orresults may differ materially. We do not intend to update these statements. Werefer you to the documents Mechel files from time to time with the U.S.Securities and Exchange Commission, including our Form 20-F. These documentscontain and identify important factors, including those contained in thesection captioned 'Risk Factors' and 'Cautionary Note Regarding Forward-Looking Statements' in our Form 20-F, that could cause the actual results todiffer materially from those contained in our projections or forward-lookingstatements, including, among others, the achievement of anticipated levels ofprofitability, growth, cost and synergy of our recent acquisitions, the impactof competitive pricing, the ability to obtain necessary regulatory approvalsand licenses, the impact of developments in the Russian economic, politicaland legal environment, volatility in stock markets or in the price of ourshares or ADRs, financial risk management and the impact of general businessand global economic conditions.
SOURCE Mechel OAO
