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United States

Profile: Mechel PAO (MTL.N)

MTL.N on New York Stock Exchange

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8 Dec 2016
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Mechel PAO, formerly Mechel OAO, incorporated on March 19, 2003, is a holding company. The Company operates in the mining, steel and power industry segments. The Company's segments include Steel segment, comprising production and sales of semi-finished steel products, carbon and specialty long products, carbon and stainless flat products, and value-added downstream metal products, including forgings, stampings, and hardware, and ferrosilicon; Mining segment, comprising production and sales of coal (coking and steam), and middlings, coke and chemical products, and iron ore, which supplies raw materials to the Steel and Power segments, and also sells raw materials to third parties, and Power segment, comprising generation and sales of electricity and heat power, which supplies electricity and heat power to the Steel and Mining segments, and also sells a portion of electricity and heat power to third parties. The Company has freight seaports in Russia on the Sea of Japan (Port Posiet) and on the Sea of Azov (Port Temryuk), and a freight river port on the Kama River, a tributary of the Volga River in central Russia (Port Kambarka). The Company has a fleet of freight railcars, locomotives and long-haul trucks, and operates a rail line to its Elga coal deposit in the Sakha Republic.

Mining Segment

The mining segment produces metallurgical coal (coking coal, pulverized coal injection (PCI) and anthracite), steam coal, iron ore concentrate, coke and limestone. The mining segment primarily consists of its coal, iron ore and coke production facilities in Russia. The mining segment also includes limestone operations, certain transportation and logistics facilities, and engineering operations. The Company's subsidiary, Southern Kuzbass Coal Company PAO (Southern Kuzbass Coal Company), and its subsidiaries operate coal mines located in the Kuznetsky basin, near Mezhdurechensk in Western Siberia. These mines include approximately four open pit mines and over three underground mines.

The Company's subsidiary, Yakutugol Joint-Stock Holding Company (Yakutugol), operates coal mines located in the Sakha Republic in Eastern Siberia, consisting of approximately two open pit mines and an underground mine. Yakutugol also holds subsoil licenses for over three iron ore deposits, located near to its coal mining operations. The mining segment also provides coal washing services to its coal mining subsidiaries. Korshunov Mining Plant OAO operates approximately two open pit iron ore mines and a washing plant located near Zheleznogorsk-Ilimsky, a town in the Irkutsk region in Eastern Siberia. Southern Kuzbass Coal Company produces bituminous coal. Yakutugol produces hard coking coal of low-volatile content.

The Company offers coal tar, naphthalene and other compounds. The Elga Open Pit is located in the South-Yakutsky basin of the Toko Coal-Bearing region in the Sakha Republic. The Company operates approximately six coal washing plants and a processing unit in Russia, which have an aggregate annual capacity of approximately 20 million tons of run-of-mine (ROM) coal. The Company's coke plants are located in the city of Chelyabinsk and in the Moscow region. The Company also produces coke nut. The Pugachevsky limestone quarry is an open pit mine located approximately nine kilometers southwest of Beloretsk in the Ural Mountains.

Steel Segment

The steel segment produces and sells semi-finished steel products, long products of a range of steel grades, carbon and stainless flat steel products, and value-added metal products, including wire products, stampings and forgings. The Company's steel production facilities in Russia include an integrated steel mill, a steel-making mill, a wire products plant, and forgings and stampings mill in the southern Ural Mountains, and a wire products plant in northwestern Russia near the border with Finland. The Company also has a wire products plant in Lithuania and a steel mill in Ukraine.

The Company offers semi-finished billets, blooms and slabs. The Company offers its customers a range of long products produced from various steel grades, including rebar, calibrated long steel products, steel angles, round products, surface-conditioned steel products, wire rod and others. The Company's wire products line includes spring wire; rope wire; bearing wire; microwire; precision alloy wire; high and low carbon concrete reinforcing wire; galvanized wire; copper-coated and bright welding wire; strand of various application; various types of nails; steel wire ropes specially engineered for the shipping, aerospace, oil and gas, and construction industries; steel wire ropes for passenger and freight elevators; general-purpose wire; steel straps and clips; chain link fences; welded (reinforcing) meshes, and others.

Power Segment

The Power segment includes the operations of Southern Kuzbass Power Plant OAO (Southern Kuzbass Power Plant) located in Kaltan in the Kemerovo region. The Power segment sells electricity and capacity to the wholesale market, as well as supplies electricity within the Company. The Company also holds interests in Kuzbass Power Sales Company OAO, a power distribution company in the Kemerovo region. The Southern Kuzbass Power Plant has an installed capacity of approximately 550 megawatts and installed heat capacity of over 510 gigacalories per hour.

The Company competes with Novolipetsk Steel PAO, Magnitogorsk Iron & Steel Works OAO, Severstal PAO, EVRAZ plc, Metalloinvest Holding Company AO, Kuznetsk Ferroalloys OAO, Chelyabinsk Electro-Metallurgical Plant OAO, Sibuglemet Holding, UMMC, SUEK AO, Stroyservis ZAO, SDS Holding Company, En+ Group, Russian Coal OAO, Kuzbasskaya Toplivnaya Company PAO and Zarechnaya Coal Company.

Company Address

Mechel PAO

ul. Krasnoarmeyskaya, d. 1
MOSCOW     125167
P: +7495.2218888
F: +7495.2218800

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