OREANDA-NEWS. On April 22, 2008 Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announced its operational results for the first quarter ended March 31, 2008, reported the press-centre of Norilsk Nickel.

Product                         1Q of 2008, thousand tones          1Q of 2008 vs. 1Q of 2007, %
Coal                                       7,279                                    + 60
Coking Coal                            4,313                                    + 94
 Steam Coal                           2,966                                     + 27
Coal concentrate*                   4,122                                     + 37
 Coking                                  3,330                                     + 43
Steam                                    792                                        + 19
Iron ore concentrate                1,163                                      + 6
Nickel                                    4.4                                          + 7
Ferrosilicon                            23                                            n/a
Hardware                               183                                          + 16
Forgings                                19                                            - 12
Stampings                              24                                            - 7
Rolled Products                      1,366                                        + 7
Flat Products                         115                                           + 3
Long Products                        817                                          + 8
Semi-Finished Products          434                                          + 7
Steel                                     1,563                                        + 5
Pig iron                                 970                                           + 4
Coke                                     917                                          -  4
Electric power generation        1,276,133                                 + 157
(ths. kWh)
* The coal concentrate has been produced from part of the raw coal output.

Mechel Management OOO Chief Executive Officer Vladimir Polin commented on the operational results for the first quarter of 2008, “We are very pleased with our operational results for the first quarter of 2008 as we achieved strong production growth across all of our business segments: mining, steel and power. Strong coal growth was driven primarily by the acquisition of Yakutugol HC OAO in October 2007, and the modernization of Southern Kuzbass OAO’s mining equipment. We continued to increase our output of nickel as the main component in stainless steel rolled product manufacturing.”

Mr. Polin continued, “Results in our steel segment, were positively driven by increased volumes of steel produced with the continuous casting method, and over time, we will convert 90% of our total steel production to use continuous casting. Furthermore, we increased our output of its finished long and flat rolled products and hardware. Our power segment substantially increased its electric power generation that was primarily driven by the acquisition of the Southern Kuzbass Power Plant in March 2007. Energy growth was also strengthened by the recent acquisition of 49% of the Bulgarian-based Rousse Thermal Power Plant in December 2007, which is operated by our professional management, and the subsequent successful integration of the Power Plant's power facilities into the company's business.”