Mechel Announces Progress in Constructing the Railway Spur Track to the Elga Coal Deposit

Mechel OAO announces that its Yakutugol HC OAO coal mining subsidiary continues active operations in constructing the road to the Elga coal deposit.

The total length of the railroad will be more than 315 kilometers. At present, traffic is possible from the Ulak station towards the Elga deposit up to the 270th km. In addition, 80 km of the access motor road have been repaired, 143 km of motor roadbed have been constructed, and 37 km of pioneer road have been constructed that now enable traffic.

Repair of 59 km of the railroad has been completed. To make this railroad section completely ready, ballasting and surfacing of rails needs to be completed. Due to severe climate conditions and low temperatures, this procedure is expected to be completed in the spring.

Active construction of the bridgeworks and laying of water-drain pipe are currently underway along the entire railroad track section. To date, 24 railroad bridges have been erected with up to 99% readiness, and more than 100 of water-drain pipes have been laid. The bridge on the 61st kilometer is completely constructed, and its commissioning enabled the builders to continue laying the track superstructure. Total length of the rail and tie network laid in January 2009 is 2 km. Motor traffic became possible across the Yalta and Ugan rivers on the 79th km and 84th km, respectively. The builders have to erect eight additional highway bridges across the Undytkan, Undytyn, Tuksani, Algama, Chapa, Karaslak, and Taik rivers.

There are 122 mechanized complexes employed in constructing the railway spur track; depending on the type of the work they perform each is equipped with bulldozers, excavators, vibrorollers, graders, and dump trucks. In total, over 1,000 units of road-building machinery are being employed at the project this moment. Specialists of approximately 40 contractors and subcontractors from various parts of Russia are performing the work, including the companies from Khabarovsk, Moscow, Yekaterinburg, Tomsk, Saratov, Odintsovo, Chita, Aldan, and Irkutsk. The general contractor for the project is Transstroy Engineering Corporation ZAO.

The works to construct the road are being strictly controlled in terms of their quality and scope, with specialists of Yakutugol HC OAO’s Directorate for the Elga Deposit Development carrying out regular on-site inspection of the construction and installation works.

Relocation of the construction equipment to the Upper Ulak station is scheduled to start in mid-February. Yakutugol HC OAO’s own machinery will be allocated for this project, as well as equipment from Mechel Mining OAO’s subsidiaries, Korshunov Mining Plant OAO and Southern Kuzbass OAO. Approximately 30 machinery units will be allocated in the first stage of this project.