Mechel on the up and up

FOR the second year in a row Russian mining and energy company Mechel has achieved record financial results with its net income for the first three quarters of this year exceeding last year's annual results.
Mechel on the up and up Mechel on the up and up Mechel on the up and up Mechel on the up and up Mechel on the up and up

Mechel Coal Resources.

Staff Reporter

The company's total revenue across all divisions soared 47.9%, up on the previous year's results to a total of $US4.65 million.

Nearly 30% of the total results, or about $1.26 million, was from Mechel's mining segment which boosted production in coal and nickel but had a minor decline in iron ore concentrate.

Total coal production increased 8.3% to 13.41 million tonnes for the first nine months of the year with the majority - about 7Mt - of this in steam coal.

Coking coal production dropped 8.4% when compared to the previous year's nine-month period but was offset by a 29.7% increase in steam coal.

Mechel CEO Igor Zyuzin said the company's focus on increasing its coal and nickel - up 22% - production was in line with its plan to capitalise on strong prices and shortfalls of other export countries.

"The increase in production output and the strong pricing environment enabled Mechel's mining segment to record operating profit three times higher than operating income for the same period of last year," he said.

"Today we are witnessing further price increases for coal products on the back of rising demand in Asian markets and infrastructural challenges faced by major coal exporting countries.

"We expect to capitalise on the existing favourable market conditions, while further expanding sales volumes, maintaining our focus on controlling the segment's operating costs and optimising our logistics operations."