Mechel

Mechel-Trans concludes a call option for 29% of the authorized capital of the stevedore for $174.6 million with the co-owner of Port Vanino Plc.

Mechel-Trans LLC has concluded a call option with one of the co-owners of Port Vanino Plc. for 29% of the authorized capital of the stevedore. The point is in redemption of 22,707 ordinary shares and 16,039 preference shares for the maximum total price of $174.6 million.

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Mechel reports signing of cooperation agreement with Baosteel Resources (China)

Mechel, the leading Russian mining and metallurgic company, has reported the signing of cooperation agreement with Baosteel Resources Int. Co. Ltd (China).
During the official visit of the First Deputy Chairman of Russian Government Igor Shuvalov to Beijing, the cooperation agreement was signed between Mechel and the Chi+nese company Baosteel Resources Int. Co. Ltd. Mechel was represented by its Vice President on Commercial Activity Mikhail Urvantsev, who was a member of the official Russian delegation.

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Russian metallurgists make losses and do not believe in the best is yet to come

Mechel, which was the last among large Russian metallurgic companies that gave an account for 2012, made the largest loss – almost $1.7 billion. Like other companies, Mechel explains the situation with paper writing-off mainly. But as analysts, as the market players estimate the market perspectives as not optimistic.
Yesterday, Mechel published its consolidated accounting for 2012. The company’s proceeds decreased by 10% to $11.27 billion, corrected rate of EBITDA by 44.4% to $1.3 billion and the EBITDA profitability decreased from 19.1% to 11.8%. Mechel showed the record net loss in the sector - $1.66 billion against the profit in the amount of $727 million last year (the Evraz’s net loss made up $335 million and the MMK’s one - $94 million). The main losses of the Mechel’s incomes were given by the mining segment, which proceeds decreased by 21% to $3.3 billion (29% in the total structure of the company’s proceeds). The sales of the metallurgic segment decreased by 5.5% to $6.8 billion (60% of the proceeds). At the same time, Mechel connects the losses with not the main business, but with nonfinancial writing-off.

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In 2012, Mechel made the net loss under US GAAP in the amount of $1.66 billion

Today, Mechel announced its financial results for 2012. Eugenie Mikhel, the Mechel’s General Director, commented on: “Last year the group worked in conditions of the continued weakening of the main mining and smelting product markets against the background of the total unstable state of the world economies.

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Bratsk ferroalloys plant is provided with raw materials

Mechel Group stated about a launch of the Uvat quartzrock deposit and the supply of the first lot of the raw material from the deposit to the Bratsky ferroalloy plant.
About 680 tons of quartzite, mined at the deposit, was delivered to the Bratsky ferroalloy plant in March 2013. An implementation of the Uvat deposit development project has been carried out during the last 4 years using the resources of the ferroalloy division of Mechel.

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Chinese Baosteel may acquire blocking shares of “Mechel-Mining” for $1.25 billion

“Mechel” is rumoured to be making arrangements with the Chinese Baosteel Group on the sale of a blocking interest inf “Mechel-Mining”. “Vedomosti” reported citing one of the minorities of the company.
According to him, “Mechel Mining” might be valued at $5 billion, while the blocking shareholding at $1.25 billion.
The source, familiar with the owner of Mechel, I.Zyuzin, confirmed the information on the negotiations. He has noted that the interaction with the prospective purchaser was difficult and he knew nothing about the completion of the negotiations.

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Steel producers try to make the most of fall in coking coal price

They revise raw material price once per month now, not once per quarter as it was before. NLMK  revises coking coal price once per month now, a source close to the company says to Vedomosti. One of its suppliers Raspadskaya also has transferred to monthly revision of prices, the Director for Strategy Development A. Andreyev says. Other consumers of Raspadskaya did the same. Now the company has closed contracts until the end of April, and then it’s going to close new contracts.

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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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