Mechel, one of the leading Russian mining and steel producing groups, has announced the fulfillment of all its financial obligations in connection of its winning of the auction for a 68.86 percent stake in Elgaugol and a 75 percent minus one share stake in Yakutugol, both of which are located in the Russian Federal Republic of Sakha Yakutia (Yakutia).
Upon the completion of the transaction, Mechel will become the full legitimate owner of the stakes in the concerned companies.
Commenting on the issue, Mechel's chief operating officer Mr. Alexey Ivanushkin stated, "We are pleased to announce that Mechel fulfilled all its financial obligations under the transaction ahead of schedule. Mechel financed the transaction through a combination of its own cash and borrowed funds, most of which were provided by VTB Bank. The acquisition of Yakutugol OAO, which mines approximately 10.0 million tonnes annually, will enable Mechel to fulfill its strategic objective to mine about 30.0 million tonnes of coal next year. Once mining operations at the Elga project reach the planned capacity of approximately 30.0 million tonnes, Mechel will become one of the world's largest coal companies with an annual output of over 60.0 million tones."