Dallas, Texas 09/19/2013 (Financialstrend) – Mechel OAO (ADR) (NYSE:MTL) is a front-running metals and minerals company. It has announced that Vnesheconombank’s Supervisory Board has approved financing that totals 2.5B US dollars for the first-stage development of Elga Coal Complex. This stage includes the construction of a washing and mining complex that has an annual-capacity of 11.7M tons of “run of mine” coal by the year 2017. A railroad is also included in this stage. The implementation of this project will create more than 5,000 new jobs.
This loan has a 13.5 years tenor with a grace period that stretches upto 2017. In addition, Vnesheconombank’s representatives will have the right to 2 out of 5 seats on the Elgaugol OOO board. Igor Zyuzin, Mechel OAO (ADR) (NYSE:MTL)’s Chairman noted that the company has invested more than 2 billion dollars into this project over a period of 5 years. They have constructed a 321km railroad that stretches from the Baikal-Amur Mainline upto the deposit, a temporary workers-settlement, infrastructure as well as a washing-plant.
He added that now with the help of funds that have been received from Vnesheconombank’s, they will be able to complete the 1st phase construction faster in order to reach the design-capacity of coking-coal production faster. The company has everything that is required to deliver the coal that it mines, to its customers. He added that they are creating an industrial cluster from scratch. This will become the base for economic growth in the region.
In Wednesday’s trading session, Mechel OAO (ADR) (NYSE:MTL) stock rose by 6.41%. The shares opened at a price of $3.62, climbed to an intraday high of $3.87 and dropped to close at $3.82. Approximately 2.39 million shares were exchanged in Wednesday’s trading while the average-volume of company shares that were traded over 30 days was 2.17 million. The company has a market cap of 1.59 billion.