Evraz said on Friday it would merge the Russian Federation’s largest coking coal producer, Yuzhkuzbassugol, and the country’s second-largest coking coal producer, Raspadskaya.

“Through combination we will create a Russian coking coal leader and a top-three global coking coal producer distinguished through the best resource base, world-class management team, strong growth profile and significant export potential. The combined company will have Evraz’s steel mills located in Siberia and the Urals as its main and largest customers,” Evraz chief Alexander Frolov said.

Current Raspadskaya CEO Gennady Kozovoy has been appointed the new CEO of Yuzhkuzbassugol. He said his top priority will be to improve safety standards.

Already this year 149 miners have died in two accidents at Yuzhkuzbassugol’s mines.

Yuzhkuzbassugol operates 10 mines, two washing plants, three machinery plants, three transportation companies and a number of support companies.

As of January 1, 2007, total proven and probable coal reserves were estimated by IMC Consulting at 888 million tonnes.

Yuzhkuzbassugol underground mines account for 20% of the total coal output in Kuzbass and 15% in Russia.

Raspadskaya has 11 subsidiaries in Russia’s coal-rich Kuzbass region. Its mining operations include two active underground mines that comprise five operational longwall faces, one active openpit mine, a coal preparation plant, one underground mine under construction, as well as industrial, maintenance and transportation infrastructure.

As of June 2006, Raspadskaya's total coal reserves were estimated by IMC Consulting at 782Mt while total resources amounted to 1.4 billion tonnes according to JORC standards.