Mechel, one of the leading Russian mining and steel groups, has reported that it is investing a total of RUB 2.9 billion ($80,4 million) in the technical revamping program for Mechel Mining OAO's production facilities. Investment in program does not include Elga Coal Complex, which is the largest coking coal deposit of the company.
Within the scope of the technical revamping program, equipment worth a total of RUB 1.2 billion ($33,3 million) has already arrived at Mechel subsidiaries Southern Kuzbass Coal Company OAO and Korshunov Mining Plant OAO, with a dragline, a tunneling machine and a diesel locomotive having arrived at Southern Kuzbass Coal Company.
In addition, an ESH-20/90 walking excavator is being assembled at Krasnogorsky Open-Pit Mine OAO and the assembly of a Liebherr R9250 mine excavator is due to begin shortly at Korshunov Mining Plant's Rudnogorsky mine.
"Over the past few years we have been paying particular attention to modernizing our mining segment's production facilities and launching equipment that would enable us to cut expenses and, accordingly, production costs. Even now when our financial situation is not entirely unclouded, the technical revamping program is being implemented in full, as mining is meant to become our company's chief growth point according to Mechel's strategy," said Mechel's chief executive officer Oleg Korzhov.