Zheleznogorsk-Ilimsky, Russia – June 24, 2009 – Mechel OAO (NYSE: MTL),one of the leading mining and metals companies, announces starting production for repair of type 2 BC-105 dump cars at its Korshunov Mining Plant OAO subsidiary and obtaining a permit for the repaired dump cars to be used at railways of Russia.

To establish the production reconstruction of repairs and mechanics shop was performed, high technology equipment was purchased, and the staff of all services and units involved in process technology was additionally trained. Capital investments in the new production amounted to more than 42 million rubles and 34 new occupations were provided extra.

All activities to start new production including process technology and specifications-supplied unique equipment development as well as construction and erection works were performed in-house without involvement of design companies and contractors allowing for costs minimization.

The production to perform capital and depot service repairs of type 2 BC dump cars of carrying capacity of 105 tons used at the plant for ore transportation from Rudnogorsky and Tatyaninsky mines along railways of Russia.

Previously dump cars repairs were performed at special institutions in the city of Irkutsk. New production will allow Korshunov Mining Plant to make savings from cars transportation to repairs location in the amount up to 5.5 million rubles per year.

Repairs and electromechanics shop of Korshunov Mining Plant has successfully completed testing for professionalism and qualifications of the staff and availability of all required equipment and detection tools for repairs at the plant to obtain the permit for repairs works. Therefore, inspecting authorities have confirmed full compliance with process technology and safety regulations of Russian Railways JSC.

Capacity of new production provides for Korshunov Mining Plant annual needs for type 2 BC dump cars repairs of 180 dump cars per year.

“Starting this production in line with crisis management program implementation allows for significant optimization of our production costs. We are proud of our staff that is able to prove their highest professional level not only at the enterprise but on the national scale as well. Currently Korshunov Mining Plant is the only non-dedicated Russian enterprise authorized by Russian Railways JSC to perform dump cars repairs and use them along all Russian railways”, Mechel OAO Senior Vice President Vladimir Polin commented.