MOSCOW, June 10, 2013 (GLOBE NEWSWIRE) -- 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.
Mechel is one of the leading Russian companies. Its business includes four segments: mining, steel, ferroalloy and power. Mechel unites producers of coal, iron ore concentrate, nickel, ferrochrome, ferrosilicon, steel, rolled products, hardware, heat and electric power. Mechel products are marketed domestically and internationally.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our Form 20-F. These documents contain and identify important factors, including those contained in the section captioned "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.