MOSCOW, June 14, 2011 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL), one of the leading Russian mining and steel companies, reports an accident at the roasting workshop's electric furnace #2 in Southern Urals Nickel Plant, which is part of Mechel Group.
On June 12, 2011 a flash at the workshop's electric furnace #2 destroyed the furnace's roof and fatally injured one worker. The Federal Ecological, Technological and Atomic Monitoring Agency (Rostekhnadzor)'s Urals department set up a commission to find the cause of the incident.
Due to the furnace #2's outage, the plant launched its reserve furnace #3. Repairs at the furnace #2 will take about 10 days to complete and are estimated to cost approximately 700,000 rubles (about 25,000 US dollars*).
The accident will not impact the plant's plans for production in June and for this year as a whole.
* According to the Russian Central Bank exchange rate of 27.7907 RUR/$ as of June 11, 2011.
Mechel is one of the leading Russian companies. Its business includes 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.
CONTACT: Mechel OAO Ekaterina Videman Phone: + 7 495 221 88 88 email@example.com