Mechel continues rise

INCREASED coal output, strong market positions and favourable pricing all conspired to lift Russian miner and steel group Mechel's results for the first half of 2007.
Mechel continues rise Mechel continues rise Mechel continues rise Mechel continues rise Mechel continues rise

NSW Premier, Bob Carr, and Sydney
Gas managing director, Bruce Butcher at
the opening of the Camden Project gas plant.

Angie Tomlinson

Revenues increased 55% to $US2.99 billion and net income lifted 169% to $489.5 million. Mining segment revenue from external customers was $897.8 million.

Coal output rose 10% year-on-year driven by new production from the Olzherasskaya-New Mine, which was commissioned at the end of last year, and ongoing upgrades of mining equipment as part of the company's technical equipment modernisation program.

Coal output for the first half was 8.87 million tonnes, with a split of 4.22Mt coking coal and 4.65Mt steam coal.

"Supported by the current favourable pricing environment and the outlook for coal and iron ore markets, we intend to maintain our pace of production output in line with our annual plan, and anticipate continued strong operating performance from the mining segment through the remainder of this year," said Mechel chief Igor Zyuzin.