MECHEL LAUNCHES NEW MINING EQUIPMENT AT NERYUNGRINSKY OPEN PIT
Moscow, Russia – March 21, 2017 – Mechel PAO (MICEX: MTLR, NYSE: MTL), one of
the leading Russian mining and metals companies, reports the launch of new
mining equipment at Yakutugol Holding Company AO’s Neryungrinsky Open Pit.
Investment into acquisition of two open-pit excavators totaled 1.2 billion
rubles.
The company began exploiting a heavy-duty EKG-18 open-pit excavator with a
18-cubic-meter bucket capacity, with another one due to be launched into service
in late April. Machines produced by Urals Machine-Building Plant will be used
for overburden mining at the open pit on the round-the-clock basis. Excavators
of this type are designed for work in difficult mining, geological and climatic
conditions and have proved to be very effective in mining heavy-textured rocky
soil.
For better control over all work-related parameters, the excavators are equipped
with information management and microprocessor-based control systems, as well as
fault detection systems and automatic protection of mechanisms and joints.
Neryungrinsky Open Pit’s technical upgrade program provides for buying two more
excavators with a 10-cubic-meter bucket capacity this year.
“Our cooperation with Urals Machine-Building Plant serves as confirmation of the
efficiency of Russia’s import substitution program. The experience we have had
with EKG excavators at our coal open pits in Yakutia and Kuzbass proves that the
new machines are reliable, highly productive and comfortable for their crew.
Also, by buying Russian-produced equipment, we save not only on cost, but also
on the delivery time for the equipment and its spare parts,” Mechel PAO’s Chief
Executive Officer Oleg Korzhov noted.

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Mechel PAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com
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Mechel is an international mining and steel company. 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.
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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.