Mechel OAO News
Mechel Announces Commissioning of New Mining Machinery at Yakutugol OAO
NERYUNGRI,
The electrohydraulic PC-8000 excavator, with a 36.0 cubic meter bucket capacity, manufactured by KMG (Komatsu-Germany) is the third excavator of this brand purchased by Yakutugol OAO. This machine has high performance characteristics and reliability that meets the requirements of coalminers.
The manufacturer's specialists took into account the needs of Mechel's Neryungri Open Pit Mine engineers and improved the machine, adapting it to the northern operational conditions including the modernization of the undercarriage and the revision of the cabin heating system. The changes to the excavator's design will ensure even greater reliability and productivity of the machine.
The cost of the machine is about RUR404.0 million (approximately US$17.0 million). The machinery is intended to yield a rapid return on investment and is expected to load about 8.0 million cubic meters of capping in 2008.
"Given the expansion of our mining segment and the planned increase of production volumes, the acquisition of high-powered mining and haulage equipment is significant and supports the implementation of the company's strategic development program," Mechel Management OOO Chief Executive Officer Vladimir Polin commented.
Mechel is one of the leading Russian companies. Its business includes three segments: mining, steel, and power. Mechel unites producers of coal, iron ore concentrate, nickel, steel, rolled products, hardware, heat and electric power. Mechel products are marketed domestically and internationally.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our Form 20-F. These documents contain and identify important factors, including those contained in the section captioned "Risk Factors" and "Cautionary Note Regarding Forward- Looking Statements" in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.
SOURCE Mechel OAO
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