OREANDA-NEWS. On October 11, 2007 Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announced its operational results for the first nine months of 2007, reported the press-centre of Mechel.

Mechel Management OOO Chief Executive Officer Vladimir Polin commented on the operational results for the first nine months of 2007: “Both of our business segments, mining and steel, have demonstrated high operational results for the first nine months of 2007. During this reporting period, we observed growth in all markets for the mining segment. Favorable market conditions and successful implementation of our subsidiaries’ technical re-equipment program enabled Mechel to increase its outputs. The increase in our total output of coal was achieved mainly due to the increased output of steam coal. Output of iron ore concentrate was consistent with our planned figures and in line with the designed capacity at the Korshunov Mining Plant, our iron ore concentrate producer. We continued to scale up nickel production volumes, which is connected with the ongoing period of high prices for the nonferrous metal and supported by the commissioning of new drilling equipment at our Southern Urals Nickel Plant subsidiary, which is in line with our capital investment program.”

Mr. Polin added: “In our steel segment, we focused on producing commodity items with high added value, while reducing our consumption ratios and significantly expanding our metal product mix in terms of grades and sections. In addition, taking advantage of the favorable market conditions, Mechel continued to scale up its output of finished commodities - long and flat products - while reducing its output of billets. We also increased hardware output, which was supported by improvements such as the new drawing equipment that was commissioned at our Beloretsk Metallurgical Plant subsidiary to produce high quality spring wire. Strong growth of coke output was connected with Mechel’s acquisition of Moscow Coke and Gas Plant and the commissioning of a new coking battery at Chelyabinsk Metallurgical Plant at the end of last year. In August, Mechel acquired Bratsk Ferroalloy Plant, which was consistent with our intention to develop a promising business line of ferroalloy production and it has already produced initial positive operational results.”

Full report see here: http://www.mechel.com/news/article.wbp?article-id=D5A4AD97-B809-4F24-868F-9993CEA38F5F