Moscow, Russia — June 10, 2013 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, and BelAZ OAO announce signing an agreement to create a joint Russo-Belarusian venture ElgaBelAvto OAO for technical maintenance and repairs of BelAZ mining dump trucks in the Republic of Sakha (Yakutia).
The enterprise’s facilities will be located in Yakutugol Holding Company’s production area, and a subsidiary is planned to be created at the Elga Open Pit. ElgaBelAvto is due to fully meet the maintenance needs of Yakutugol Holding Company’s two largest coal open pits — Neryungrinsky and Elga — which include over 140 mining truck units in the medium run.
Investment in the project is estimated to total 9.5 million US dollars before 2018. Over 330 jobs are planned to be created. According to the agreement, ElgaBelAvto will begin working in late 2013- early 2014. In the future, the joint venture may offer its services to other BelAZ customers in the Republic of Sakha (Yakutia) and neighboring regions.
“BelAZ is our reliable and longstanding partner, and today Belarusian-made mining trucks work at all of Mechel’s mining facilities. Creating a joint service center will enable Yakutugol Holding Company to cut equipment maintenance costs and set up the technical base for a large-scale increase of production at Yakutugol and the Elga coal deposit,” Mechel OAO’s Vice President for Commercial Activities Mikhail Urvantsev commented.