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Mechel Bluestone to Supply Russian Coke Plants
Jul. 6, 2010 Mechel OAO announced that it has started shipping coal from its U.S. subsidiary, Mechel Bluestone, in order to supply its Russian coke plants with scarce grades of coking coal.
The imported coal will allow Mechel to continue to operate despite insufficient supplies of coking coal concentrate in Russia. The first 73.5 thousand tonnes of coal from Mechel Bluestone have already arrived to the Port Mechel Temryuk, and a second Panamax ship loaded on July 1 is expected to arrive in the second half of July.
The company said it intends to arrange regular coal supplies from the U.S. to Russia — not only for internal usage but also for sales to the market. Mechel Bluestone has adjusted its production plan to increase the output of coal grades that can be substituted for high volatile grades in the Russian market.
Mechel announced its acquisition of the Bluestone coking coal assets in April of 2009 and closed the deal in May of that same year. With four mining complexes comprising eight active open pit and five underground mines, Bluestone's coking coal holdings in West Virginia include up to 725 million tonnes of reserves and resources (2009 estimate according to JORC Guidelines). The majority is premium quality, low volatility hard coking coal.
Mechel, one of Russia’s leading companies, comprises four segments: mining, steel, ferroalloy and power. Mechel unites producers of coal, iron ore concentrate, nickel, steel, ferrochrome, ferrosilicon, rolled products, hardware, heat and electric power, and its products are marketed domestically and internationally.