Mining

Mechel’s mining segment includes production and sales of coking coal concentrate, iron ore concentrate and coke, which are chief raw material for production of steel and steam coal. Apart from providing for the needs of the steel and power segments, we sell significant volumes of raw materials to third-party consumers.

Mechel is a leading Russian coking coal producer as well as one of the world’s major coking coal concentrate producers. The Group controls 25% of Russia’s coking coal washing facilities. In 2015 the company produced 23.2 million tonnes of coal.

The segment’s priority investment project is the development of Elga Coal Complex. Elga’s JORC reserves of high-quality coking coal grades, which are in high demand internationally, amount to approximately 2.2 billion tonnes. After Elga Open Pit was commissioned and tracks were laid along the 321-kilometer Ulak-Elga railroad linking Elga Coal Complex with Baikal-Amur Mainline, Mechel went ahead with the next stage launching a washing plant in October 2012. Elga Coal Complex’s first stage includes construction of a railroad and a mining and washing complex with annual capacity of 11.7 million tonnes of run-of-mine coal by 2017.

In summer 2011 and spring 2012, the company acquired subsoil licenses for iron ore mining at the Pionerskoye in the Sutamskaya area and in the Sivaglinskoye deposit, all of them located in the Republic of Sakha (Yakutia)’s Neryungri region. The total estimated reserves of the two deposits’ reserves exceed 163 million tonnes of iron ore, while the Sutamskaya area’s forecast reserves are estimated at 1.35 billion tonnes of iron ore, under the Russian standards.

Mechels mining segment includes:

Southern Kuzbass
Southern Kuzbass

Mezhdurechensk, Kemerovo Region, Russian Federation

Southern Kuzbass Coal Company was formed in 1993 as several mining and processing enterprises joined forces. The company produces coking and steam coals, and comprises enterprises with many years of glorious history, many awards, well-developed infrastructure and highly proficient employees.

Yakutugol
Yakutugol

Neryungri, Republic of Sakha (Yakutia), Russian Federation


Yakutugol AO is one of Russia’s largest coal companies. It comprises three mining enterprises – the Nerungrinsk Open Pit, the Kangalassk Open Pit and the Dzhebariki-Khaya Open Pit.

Elga Coal Complex
Elga Coal Complex

Subsidiary of Yakutugol AO, Republic of Sakha (Yakutia), Russian Federation

The Elga deposit is the world’s largest untapped deposit. Elga’s JORC reserves of high-quality coking coal grades, which are in high demand internationally, amount to approximately 2.2 billion tonnes.

Korshunov Mining Plant
Korshunov Mining Plant

Zheleznogorsk-Iliymsky, Irkutsk Region, Russian Federation

orshunov Mining Plant PAO is an industrial complex producing and dressing iron ore. Korshunov Mining Plant is one of Russia’s largest iron-ore mining enterprises and the only one such in Eastern Siberia.

Moscow Coke and Gas Plant
Moscow Coke and Gas Plant

Vidnoye, Moscow Region, Russian Federation

Moscow Coke and Gas Plant OAO’s base in central Russia provides it with an advantageous geographic location and easy access to stable consumer markets, which make the plant one of the Moscow Region’s best enterprises.

Mechel-Coke
Mechel-Coke

Chelyabinsk, Chelyabinsk Region, Russian Federation

Chelyabinsk Coke and Chemical Products Plant (Mechel Coke) is a by-product coke plant with over 10 shops and departments. Its primary product is metallurgical coke, manufactured in six coke-oven batteries. Mechel Coke supplies the needs of Mechel enterprises as well as markets its products domestically and internationally.

The mining segment’s enterprises are consolidated in Mechel Mining company.

In 2015 Mechel’s enterprises sold 8.2 million tonnes of coking coal concentrate, 2.3 million tonnes of PCI, 2.1 million tonnes of anthracites, 6.6 million tonnes of thermal coal, 2.8 million tonnes of iron ore concentrate and 2.9 million tonnes of coke.