MOSCOW, March 21, 2014 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL), one of the leading Russian mining and metals companies, reports that its subsidiary Mechel Somani Carbon Private Limited launched a screening facility at coal terminal in Vishakhapatnam on India's east coast. This will greatly expand Mechel's capacity for marketing coal on the promising Indian market.
Mechel Somani Carbon Private Limited's screening facility on the basis of the coal terminal enables the company to sort anthracites supplied by Mechel's mining enterprises. Its chief consumers are small and medium-sized businesses. The screening facility's project capacity is set at up to 250,000 tonnes a year.
Mechel gradually increases sales of its coal in India. In 2014, the joint venture plans to market a total of 250,000 tonnes of anthracites, which will make up 20% of India's anthracite market.
"The Indian market, where demand for coal continues to grow, is of strategic interest to us. As of now, India annually buys 110 million tonnes of steam coal and 40 million tonnes of coking coal. Experts estimate that by 2020 India will be importing up to 120 million tonnes of coking coal of various grades. Considering the favorable forecasts for the future, Mechel's efforts are aimed not only at building up stable ties directly with all kinds of clients, but also at setting up necessary infrastructure," Mechel Mining Management Company OOO's Chief Executive Officer Pavel Shtark noted.
Note for editors:
Mechel Somani Carbon Private Limited is a joint venture set up by Mechel Carbon in partnership with Somani Group in 2011. Mechel Carbon owns 51% shares in the venture. The company is tasked with distributing metallurgical coal on the Indian market.
Somani Group is focused on growth in core sectors of Indian economy such as Steel, Coal, Power, Engineering and Education. Somani Group has long standing joint ventures with world known companies.
Mechel is an international mining and steel company which employs over 80,000 people. Its products are marketed in Europe, Asia, North and South America, Africa. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and electric power. All of its enterprises work in a single production chain, from raw materials to high value-added products.
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.