Key Developments: Mechel OAO (MTL.N)
3.01USD
19 Jun 2013
$-0.11 (-3.53%)
$3.12
$3.18
$3.19
$2.97
551,498
663,891
$8.34
$2.62
Latest Key Developments (Source: Significant Developments)
Mechel OAO May Conduct Up to $100 Million ADR Buyback-Interfax
Interfax reported that the Board of Directors at Mechel OAO has approved the acquisition of up to $100 million worth of the Company's ordinary-share ADR. Wholly owned Mechel OAOA subsidiary Skyblock Limited will conduct the buyback, which will be done on the open market or in private transactions depending on market conditions, in accordance with applicable law and other requirements. The program does not impose on Mechel OAO any obligations as to a specific amount of ADR, the Company said. It can also be suspended at any time Mechel OAO decides. Full Article
Mechel OAO BelAZ Create Joint Venture ElgaBelAvto-DJ
Dow Jones reported that Mechel OAO and BelAZ OAO announced signing an agreement to create a joint Russo-Belarusian venture ElgaBelAvto OAO for technical maintenance and repairs of BelAZ mining dump trucks in the Republic of Sakha (Yakutia). The enterprise's facilities will be located in Yakutugol Holding Company's production area, and a subsidiary is planned to be created at the Elga Open Pit. ElgaBelAvto is due to fully meet the maintenance needs of Yakutugol Holding Company's two largest coal open pits -- Neryungrinsky and Elga -- which include over 140 mining truck units in the medium run. Investment in the project is estimated to total 9.5 million US dollars before 2018. Over 330 jobs are planned to be created. According to the agreement, ElgaBelAvto will begin working in late 2013- early 2014. In the future, the joint venture may offer its services to other BelAZ customers in the Republic of Sakha (Yakutia) and neighboring regions. Full Article
Mechel OAO Announces Signing Agreement With Shasteel Group
Mechel OAO announced signing a coking coal supply agreement with China's Shasteel Group. According to the signed agreement, Mechel Carbon (Singapore), trading subsidiary of Mechel OAO's mining division, will directly supply Shasteel Group with 40,000 to 80,000 tonnes of coking coal a month from Russian Far East ports, starting from June 2013. Coking coal prices will be determined on a monthly basis. Full Article
Mechel OAO In Talks to Sell South Urals Nickel Plant-DJ
Dow Jones reported that Mechel OAO is in talks to sell its loss-making Southern Urals Nickel Plant. A deal is likely to be completed by September 1, the paper reported, citing the governor's office in the Orenbrug Region where the plant is located. The name of the buyer and a possible price were not disclosed. Full Article
Mechel OAO Signs Coal Supply Agreement with South Korean Posco-Interfax
Interfax reported that Mechel OAO has signed with South Korean Posco three-year agreement for the supply of coking coal, the Company reported. Under the terms of the agreement Mechel OAO will supply Posco with 500 tons of coal per year. In addition, Mechel Karbon concluded an annual contract with Posco for delivery of 200 thousand tons of coal PCI in 2013. The price of delivered coal will be determined on a quarterly basis. Full Article
Mechel OAO Recommends no FY 2012 Dividend Payment on Ordinary Shares, to Distribute Dividend on Preferred Shares-Interfax
Interfax reported that the Board of Directors of Mechel OAO has decided to recommend its shareholders to approve no dividend payment on ordinary shares for the fiscal year 2012, as well as to distribute dividend on preferred shares for the fiscal year 2012 in the amount of RUB 0.5 per preferred share. The Annual General Meeting of shareholders is scheduled on June 28, 2013. Full Article
Mechel OAO Raises USD 1 Billion in Loans from Gazprombank OAO-Interfax
Interfax reported that Mechel OAO has signed a number of credit agreements with Gazprombank OAO worth a total of USD 1 billion. Coal mining units Yakutugol and Southern Kuzbass will borrow USD 490 million and USD 400 million, respectively. The credit lines with the possibility of drawing down funds can be used for a one-year period, with a five-year repayment period for each tranche. The loans have a three-year grace period and repayment in equal quarterly installments over the last two years. In the steel division, Beloretsk Metallurgical Plant signed a loan agreement for RUB 1.7 billion (USD 54 million) and Urals Stampings Plant signed another for 1.6 billion (USD 50 million). For the steelmaker the credit lines can be used with RUB the possibility of drawing down funds during a three-year period. The maximum period for each tranche is two years with repayment at the end of such period. Full Article
Mechel OAO and Two of Its Subsidiaries Receive RUB 7,6 Billion Loan from Ugol'naya kompaniya Yuzhnyi Kuzbass OAO-Intefax
Interfax reported that Ugol'naya kompaniya Yuzhnyi Kuzbass OAO has provided Mechel OAO and its two subsidiaries, Kholdingovaya kompaniya Yakutugol' OAO and Chelyabinskiy metallurgicheskiy kombinat OAO, with a RUB 7,6 billion loan. Kholdingovaya kompaniya Yakutugol' OAO has received three loans: RUB 1,654,248,180 do to manure on April 25, 2013; RUB 1,477,644,848 due to mature on April 22, 2014 and RUB 1,789,518,900 due to mature on April 23, 2014; Chelyabinskiy metallurgicheskiy kombinat OAO has received a loan of RUB 1,309,351,200 due to mature on april 24, 2014; Mechel OAO has received a RUB 1,409,7000,000 due to mature on April 23, 2014. Full Article
Mechel OAO Announces Production Plans for 2013-Interfax
Interfax reported that Mechel OAO plans to produce 5.5 million-6 million tons of steel in 2013, Vice President for Economics and Business Development Mr. Oleg Korzhov said during a conference call. Mechel OAO produced 6.5 million tons of steel in 2012. It plans to produce 6.5 million tons of rolled product in 2013. Output of iron ore will total 4.5 million tons and coal 24 million-25 million tons. Actual steel production will depend on operations at the Company's Ukrainian subsidiaries, he said. Mechel OAO produced 4.4 million tons of iron ore concentrate and 27.7 million tons of coal last year. Mr. Korzhov said actual figures would depend on the market situation, and primarily the performance of the Ukrainian division. Full Article
Mechel OAO Signs Agreement with Baosteel
Mechel OAO (Mechel) announced that it has signed a memorandum of understanding with Baosteel Resources Int. Co. Ltd. (Baosteel). During the official visit of Russia’s First Deputy Prime Minister Mr. Igor Shuvalov to Beijing, Mechel Group and Baosteel Resources Int. Co. Ltd signed a memorandum of understanding. Mechel’s Vice-President for Commercial Activities Mr. Mikhail Urvantsev, who was part of Russia’s official delegation, signed the document on behalf of Mechel. The memorandum stipulates that Mechel OAO, through its subsidiary Mechel Carbon Singapore will supply Baosteel Resources with up to 960,000 tons of coking coal annually. The price will be corrected monthly. In addition, the memorandum allows for implementation of joint projects in mining resources on the territory of the Russian Federation, People’s Republic of China and third countries. The sides will consider the possibility of cooperation on other fields as well, including the possibility of collaboration with the economic development institutes of the Russian Federation and the People’s Republic of China. Full Article
UPDATE 1-Mining in Siberian coal region part-suspended after quake
* Governor calls for temporary halt to underground mining
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