Mechel

Donetskstal and Euro Finance pretend to DEMZ

Russian Mechel Group is going to sell Donetsk electrometallurgical plant (DEMZ). There are two pretenders – Donetskstal and Euro Finance. Experts assess the possible transaction in $150-250 million, however, both pretenders are trying to reduce the price.
Yesterday the Chairman of Donetsk regional administration Andrei Shishatsky reported, the selling of DEMZ can be completed in the nearest future. He said, Ukrainian electrometallurgical companies having scrap-collecting business pretend to the asset. “The negotiations have started. If the transaction is concluded, the major part of the team will remain”, Shishatsky said.

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Mechel to redeem bonds of 5 billion roubles in advance

Mechel has taken a decision on advanced retirement of series 5 exchange bonds, placed by public offering in October 2009, and the payment of an accumulated coupon interest over the 14th coupon period.
The total nominal cost of the bonds makes up 5 billion roubles. The redemption period of the bonds is the 3276th day from the date of bond offering start (October 9, 2018).

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Development of Elginsky deposit becomes the primary goal

The route railway lines leading from the Elginsky coal deposit and Tyva in the direction of the port of the Far East are suggested being developed by means of using the so-called Regulatory Asset Base tariffs which also contain the investment constituent part, the Ministry of Economic Development suggests. Such an approach in fact guarantees the full realization of the project.
Recently particular attention is paid to the accelerated development of the Far East and the construction of the route railways becomes the priority goal. It means the suggested strategy is likely to be accepted.

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Mechel has signed agreement with Baosteel

Mechel has announced about signing of a memorandum for raw material supplies by its subsidiary Mechel Carbon (Singapore) and the Chinese Baosteel Resources, the subsidiary of Baosteel Group. In accordance with the memorandum, signed on March 18 in the new head-office of Baosteel Resources in Shanghai, Mechel Carbon will annually supply 960,000 tons of coking coal to Baosteel. The agreement is closed for 1 year with ability for prolongation. The price of supplied coal will be defined every month.

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Glencore and ENRC are interested in Mechel’s assets in Kazakhstan

Glencore International Plc studies the purchase of the ferroalloys assets in Kazakhstan belonging to Mechel OJSC. Glencore is mainly interested in the Kazakh assets of Mechel. Mechel is trying to sell the assets for which ENRC also intends. Now the assets of Mechel in Kazakhstan are the Shevchenkovsky nickel deposit and the chromite ore deposit “Voskhod”. Mechel, the largest steelmaking coal producer in Russia, plans to sell the assets in Russia, Kazakhstan and the Eastern Europe. The company does it to reduce the $9.3 bln of the net debt after the price fall for raw materials. The purchase of Mechel’s assets will allow Glencore to expand the production of ferroalloys after the purchase of Vale SA last year. ENRC already produces ferroalloys in Kazakhstan.

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Possible sale of unprofitable ferroalloy assets of Mechel may improve financial results of the company

According to Bloomberg, the world's largest metal-trader Glencore explores the possibility to buy the ferroalloy assets of Mechel. To date, Glencore and Mechel haven’t come to any agreement. Glencore studies the possibilities to extend its investments after the purchase of the Vale’s subsidiary, producing manganese ferroalloys, in Europe.

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Mechel sells its Romanian assets for $70

Having sold its assets in the country for $70.
Mechel has sold its plants in Romaniafor $70. It spent $216 mln on them over the past 8 years. From November these plants have been shut down and make losses – in 2013 the loss was to make up 2.4 bln roubles. The unfamiliar to the market Invest Nikarom SRL has purchased the assets. Analysts say the sale won’t significantly influence the total debt of Mechel but it will be almost impossible for the new purchaser to start making a profit.

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Mechel sells its Romanian assets for $70

Having sold its assets in the country for $70.
Mechel has sold its plants in Romania for $70. For the purchase of them it spent $216 mln over the last 8 years. From November these plants have been shut down and are making losses – in 2013 the loss is to make up 2.4 bln roubles. The unfamiliar in the market Invest Nikarom SRL has purchased the assets. Analysts say the sale won’t significantly influence the total debt of Mechel but it will be almost impossible to start making profit for a new purchaser.

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Cherepovets metal works intensifies steel casting

The Cherepovets metal works has launched a special device costing 60 million rubles that will intensify the process of converter steel casting and improve quality of the finished products. The device for uninterrupted steel casting in the intermediate ladle with the system for the quick change of submerged nozzles in converter steel casting at the uninterrupted steel casting machine was assembled in December 2012 at the machine #5 of the converter steel casting shop. The machine casts an important steel assortment, for the construction sector in particular.

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Beloretsk metallurgical plant launched a thermal zincing unit

After the capital repairs the unit on the production of wire with a zinc coating has been launched at the Beloretsk metallurgical plant (in the structure of Mechel).
It was stopped for capital repairs in December 2012. One of the reasons for this was the increased requirement of the customers on the quality of zinc coating. The main stage of the repair was the replacement of the zinc bath. Aimed at the maintenance of the existing capacities the replacement of the winding and unwinding equipment was held.

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