MOSCOW, Feb. 12, 2014 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE: MTL ) , one of the leading Russian mining and metals companies , reports successful tests of the new coal export terminal at Primorye Region's Port Posiet. Modernization of the port's facilities will enable the company to significantly increase export to the Asia-Pacific countries. The project's cost is estimated to total some 4.5 billion rubles.
The first stage of Port Posiet's technical revamping provisions for a cargo turnover growth to up to 7 million tonnes a year. With the new coal export terminal, the port will be able to unload some 400 wagons a day (28,000 tonnes of coal) and load about 30,000 tonnes of coal daily onto cargo vessels.
The coal export terminal's equipment was produced by the German-based ThyssenKrupp concern, whose experts are currently overseeing start-up and commissioning works. The complex's chief characteristic is its use of car tipping machines, which technology makes unloading more intensive while minimizing damage to the wagons. The terminal also comprises storage equipment. The terminal's production line is equipped with magnet collectors that can eliminate foreign impurities that could contaminate the coal during transport. To unload coal in wintertime, the terminal employs a defreezing facility with infrared electric heaters. The coal export terminal is operated remotely from a single monitoring center.
Port Posiet's modernization will have a positive impact on Posiet village's environment. The new complex is equipped with highly efficient aspiration and dust-control systems which create an atomized water veil, which provides additional protection for the environment.
The coal export terminal is due to be launched into testing and industrial operation in the second quarter of 2014, which will mean completion of the first stage of Port Posiet's technical revamping investment project. The second stage is planned to be implemented in the next few years. The second stage includes construction of a deep-water berth and bottom dredging of the approach channel for Panamax-type vessels of up to 60,000-tonne cargo capacity.
"We expect that Port Posiet's modernization will enable us to improve its attraction for cargo recipients in Asia Pacific and accordingly increase coal sales. Also, by improving the port's capacity up to 7 million tonnes a year, we are preparing to transship coal products from the Elga deposit. The port's technical revamping also tackles an important social issue in Primorye Region's Khasan area, where this will create over 175 new jobs," Mechel OAO's Chief Executive Officer Oleg Korzhov noted.
Mechel is an international mining and steel company which employs over 80,000 people. Its products are marketed in Europe, Asia, North and South America, Africa. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and electric power. All of its enterprises work in a single production chain, from raw materials to high value-added products.
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.
Mechel OAO Ekaterina Videman Tel: +7 495 221-88-88
