Mechel expects its coking coal output to rise by 15 percent in 2011
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Mechel, one of the leading Russian mining and steel groups, expects its coking coal output in 2011 to increase by 15 percent from this year's level, Mechel Mining Management Company CEO Boris Nikishichev has said.
In the first nine months of this year, Mechel's coking coal concentrate production increased by 66 percent year on year to about 8.3 million mt.
In addition, in 2011, Mechel expects coking coal prices to increase about 30 percent next year from average rates in 2010.
"Currently, we see an improving environment for coking coal prices in the global market on the back of floods in Australia and high demand for coal from traditional importers in China and Japan. In these circumstances, we feel that we are well positioned to take advantage of the current favorable trends by increasing sales volumes, controlling cash costs and optimizing logistics," Mr. Nikishichev said.