MOSCOW, Aug. 14, 2014 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL), one of the leading Russian mining and metals companies, reports that the Federal Railway Transport Agency granted its permission to run wagons along the non-public railway track leading to the Elga coal deposit, which is still under construction.
According to the document, the Ulak-Elga non-public railway track, which is still under construction, is now open to wagons operated by Russian Railways OAO and other transport companies. The approval is valid until July 30, 2015.
The 321-kilometer Ulak-Elga railway track is currently being serviced by Mecheltrans Vostok OOO which ensures cargo shipments, performs maintenance of the railway track's completed part and conducts construction work at the railway. According to the state property registration certificate, the railway track to the Elga deposit is 91% complete.
"Federal Railway Transport Agency's conclusion is an important confirmation that the railway track constructed by Mechel Group and integrated into the Baikal-Amur Mainline structure is being maintained in a technically sound state. Having a transport infrastructure that is ready for operation is important not only for more intensive development of the Elga coal deposit and increased cargo turnover, but also for successful implementation of the Russian coal industry's long-term development program," Mechel OAO's Chief Executive Officer Oleg Korzhov commented.
Mechel is an international mining and steel company which employs over 70,000 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.