Moscow, Russia ó April 11, 2013 Ė Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, reports the launch of constant operation at the Uvatsk quartzite deposit and delivery of the first batch of raw materials from the deposit to Bratsk Ferroalloy Plant OOO.
Approximately 680 tonnes of quartzite mined at the deposit were delivered to Bratsk Ferroalloy Plant in March 2013. Implementation of the Uvatsk deposit development project took some four years, using Mechelís ferroalloys divisionís own resources and funds.
ďThis event is a key stage in the Uvatsk depositís successful development. In the second half of 2013, Bratsk Ferroalloy Plant will already be fully internally sourced with ore needed to produce high-quality ferrosilicon with 65-75% silicon content. This will enforce the plantís independence of external sources of raw materials and obtain its own high-quality raw materials cheaper by 25-30% than current market prices. This will also have a positive impact on the economic and financial results of Bratsk Ferroalloy Plant, which is one of the most successful enterprises in Mechel Groupís ferroalloy segment,Ē said Sergey Zhilyakov, Chief Executive Officer of Mechel Ferroalloys Management Company OOO.
Bratsk Ferroalloy Plant won the tender for the rights to utilize the subsoil plot on the Uvatsk deposit of quartzite and quartz sandstones in May 2008. The Uvatsk deposit is located in the Irkutsk Region, approximately 24 kilometers from the town of Nizhneudinsk.