Mechel launches new $100 million coal mine

Mechel launches new $100 million coal mine

Mechel [RTS: MTLR], a leading producer of special steel and alloys, said Friday it has started operation of a new coal mine, which cost $100 million to build.

It said the Olzherasskaya mine, in southwestern Siberia, will increase the company’s coal output by 1.8 million tons in 2007. The new mine has a design capacity of 3 million tons of coal a year, which will be reached by 2010.

“The project has been carried out as part of Mechel’s long-term investment program that prioritizes the development of the company’s mining segment and raising coal production to 25 million tons by 2010,” the company said in a news release.

Coal from the new mine will be exported mainly to Asia and Western Europe, as well as supplied to the domestic market.

Mechel is included in the Russian Industrial Leaders Index RUXX, a composite economic index of 20 Russian companies with financial instruments traded on bourses, including the New York Stock Exchange, the London Stock Exchange, Nasdaq and AMEX.

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