Mechel starts importing coal supplies from US subsidiary

Monday, 05 July 2010 17:16:37 (GMT+2)

Mechel, one of the leading Russian mining and steel groups, has announced that it has started importing supplies of coal from its US-based subsidiary Mechel Bluestone, considering the insufficient supplies of fat coking coal concentrate in Russia.

The company stated that the start of coal shipments from the US is a measure undertaken to supply Russian coke plants with coking coal of scarce grades.

Accordingly, Mechel intends to arrange regular coal supplies from the US to Russia both for internal usage and sales to the market. The first 73,500 mt of coal have already arrived at Port Mechel Temryuk, while the second Panamax ship loaded on July 1 at the port of Norfolk with coal produced by Mechel Bluestone, is expected to arrive in the second half of July.

Mechel Bluestone has already adjusted its production plan to increase output of coal grades which can be used as substitutes for high volatile grades for the Russian market.

Mechel Bluestone's coking coal holdings in West Virginia include up to an estimated 725 million mt of reserves and resources, the vast majority of which is premium quality, low volatility hard coking coal suitable for sale to steel producers. The acquisition of Bluestone coking coal assets was completed by Mechel in May 2009.

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