BRATSK, Russia, March 9, 2011 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL), one of the leading Russian mining and metals companies, reports that the group's Bratsk Ferroalloy Plant began test melting of an industrial probe of quartzites from the plant's own resource base, the Uvatsk deposit.
The intermediate results of melting of the industrial probe of quartzites, the main raw material used in ferrosilicon production, showed that the Uvatsk deposit's reserves are suitable for production of ferrosilicon with 65% silicon content, which is most demand.
The test melting, which is conducted in one of the plant's furnaces, will continue until May 2011. By that time, Bratsk Ferroalloy Plant will use some 10,000 tonnes of quartzites in its furnaces. The results, received after the entire test lot is used, will enable the determination the material's final industrial and technological characteristics and thus make further usage of Uvatsk quartzites as efficient as possible.
"Transferring production to use of quartzites from our own deposit will not only allow the plant to be independent of external sources, but also get new qualitative measures of the final product, which will have a positive impact on the economic and industrial results of Mechel Group's ferroalloy segment," said Gennady Ovchinnikov, Chief Executive Officer of Mechel Ferroalloys Management Company OOO.
Bratsk Ferroalloy Plant won the tender for the rights to utilize the subsoil plot on the Uvatsk deposit of quartzite and quartz sandstones in May 2008. The Uvatsk deposit is located in the Irkutsk Region, approximately 24 kilometers from the town of Nizhneudinsk. Industrial exploitation of the Uvatsk quartzite deposit is due to be launched in the second half of 2011, once the reserves receive state registration.
Mechel is one of Russia's leading companies. Its business is primarily composed of four segments: mining, steel, ferroalloy and power. Mechel unites producers of coal, iron ore concentrate, nickel, steel, ferrochrome, ferrosilicon, rolled products, hardware, heat and electric power. Mechel products are marketed domestically and internationally.
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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.
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