MECHEL INCREASES EXPORTS OF ELGA COAL
Shanghai, China – December 21, 2016 – Mechel PAO (MICEX: MTLR, NYSE: MTL), one
of the leading Russian mining and metals companies, reports signing a memorandum
for supply of the Elga deposit’s coal with China’s Jidong Cement, one of the
world’s top five cement producers.
According to the memorandum, Mechel will supply its Chinese partners from two to
three million tonnes of steam coal (up to 250,000 tonnes monthly) mined at
Mechel’s coal facilities — Elgaugol OOO, Yakutugol Holding Company AO and
Southern Kuzbass Coal Company PAO. Supplies will be made starting in December
2016 and until December 2017. Prices will be adjusted on a monthly basis.
“This is the first long-term agreement for the next year that our company has
signed since coal prices recouped globally. We are particularly pleased that it
involves increase of coal supplies from Elga, a new flagship of Russia’s coal
industry in the Far East. With this contract, Jidong Cement becomes the top
foreign consumer of Elga’s products,” Mechel Mining Management OOO’s Chief
Executive Officer Pavel Shtark noted.
***

Mechel PAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com
***

Mechel is an international mining and steel company which employs 66,000 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.