According to a preview prepared by IMC Group Consulting Ltd., Russia's largest coking coal producer Mechel had total JORC equivalent coal reserves of 3.27 billion mt as of May 1, 2011.
The given amount of coal reserves is enough for 110 years of mining at the current coal production levels of Mechel. The report also indicated that the company has iron ore reserves of 267 million mt.
Mechel plans to grow its mining business through development of its Elga mine. Production is expected to start in the current month of August at Elga and reach 9 million mt per year by 2015 and 27 million mt per year by 2021.
Mechel also stated that they are evaluating a possible public listing of the mining division of the company.