Mechel Reports 1H 2011 Operational Results
OREANDA-NEWS. August 18, 2011. Mechel (NYSE: MTL), one of the leading Russian mining and metals companies, announces 1H 2011 operational results.
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Mechel JSC ’s Chief Executive Officer Yevgeny Mikhel commented on the company’s 1H 2011 operational results:
“In the first six months of 2011 we managed to exceed on most major points the operational results for the same period last year, thus consolidating our earlier success in increasing production and sales in our principal markets. Despite a minor decrease in coal production, which was due to a temporary halt of Yakutugol’s Nerungrinskaya washing plant, the Group managed to profit by growing demand and increase sales volumes of coking coal concentrate by 28% compared to the first half of 2010. We achieved particularly impressive growth in PCI sales volumes, which rose by 242% in the first half of 2011 compared to the same period last year, with the company demonstrating confident growth of sales volumes of other mining products as well.
“Due to the planned repairs done at Chelyabinsk Metallurgical Plant’s blast furnace, Mechel’s steel segment temporarily decreased pig iron production, but that did not reflect on the sales volumes of the Group’s metal products. The international steel sales network Mechel Service Global’s sales volumes in the first half of 2011 can well be called record-breaking. Despite complicated price conditions in 2011’s first quarter, the company’s well-developed storage network enabled us to retain positive dynamics in sales volumes both in
“Despite a temporary decline in chrome production, which was due to Voskhod Mining Plant’s mining through an ore body with lower level of chrome in the ore, the ferroalloys segment also demonstrated good sales volumes in the first half of 2011. Sales volumes of nickel and ferrosilicon continued to grow compared to the same period last year.
“Compared with the first half of 2010, Mechel’s power division increased heat power generation by 2% and decreased electric power generation by 10%. The decrease is due to repairs conducted by the electric grid companies that distribute electricity generated by Southern Kuzbass Power Plant. Therefore, the plant briefly halted energy supplies to the wholesale market.”
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