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
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 2016 the company produced 22.7 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 mining facility with an annual capacity of 11.7 million tonnes of run-of-mine coal.
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.
Mechel’s mining segment includes:
The mining segment’s enterprises are consolidated in Mechel Mining company.
In 2016 Mechel’s enterprises sold about 8.3 million tonnes of coking coal concentrate, 1.6 million tonnes of PCI, 1.8 million tonnes of anthracites, 7 million tonnes of thermal coal, 2.7 million tonnes of iron ore concentrate and 2.9 million tonnes of coke.