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Thursday, 23 August 18
RUSSIA'S MECHEL PRODUCED 9.69 MMT OF RUN-OF-MINE COAL IN 1H'2018
MechelMechel PAO, one of the leading Russian mining and metals companies, announces 1H2018 operational results.
 
Mechel PAO’s Chief Executive Officer Oleg Korzhov commented on the 1H2018 operational results:
 
“Renewal of mining equipment at Mechel’s coal facilities enabled us to attain stable mining levels and we plan to maintain this work pace until this year’s end. The decrease in mining volumes was due to a decline in thermal coal mining and re-orienting our facilities to focus on coking coals. Thermal coal production increased only in Elgaugol due to an overall mining growth, so we expanded the geography of our sales of washed thermal coal from the Elga deposit, making our first supplies to India, Myanmar and Vietnam.
 
According to Oleg Korzhov, Coking coal concentrate sales in the second quarter went up by 19% quarter-on-quarter due to an increase in supplies as the company entered into new contracts with major steelmakers in Asia Pacific for the 2018 financial year, which started in April. Export to Asia Pacific went also up by 60%, with China becoming the biggest importer of Mechel's coking coal concentrate in this period. The company's supplies to Japanese customers also increased as well. Oleg Korzhov said, "Our supplies to China demonstrated positive dynamics that were further supported by the boost to coking coal concentrate production at Elga Coal Complex".
 
“The 17-percent increase in PCI sales in the second quarter is due to additional sales of stockpiles accumulated in the first quarter due to infrastructure limitations at Far Eastern ports. We ship practically the entire PCI volume to our Asian partners in South Korea, Japan and China, Chief Executive Officer of Mechel PAO said in report.
 
“Anthracite sales also demonstrated positive dynamics (+3%). Our chief customers for this product are based in Europe. Nevertheless, we try to re-distribute our export flows and increase our sales to customers in Asia and the CIS, as today those markets show better margins for anthracites, says Mechel PAO’s Chief Executive Officer Oleg Korzhov.
 
According to the report, the company has produced 9,691,000 tons of Run-of-mine coal in 1H'2018, down 6.19% compared to the same period last year.


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