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Mechel announces successful test at Elga metallurgical coal deposit

World Coal,

Mechel Announces Holding Successful Testing of Equipment for Producing metallurgical coal at Elga coal deposit

Russian mining and metals company, Mechel, has announced tests of equipment producing metallurgical coal at the Elga coal deposit’s seasonal washing plant have proved successful.

Adjusting and start-up procedures for the equipment for producing metallurgical coal at Elga seasonal washing plant were completed. The plant is due to be launched at full capacity before the end of August. Production work shifts were formed in order to ensure the plant’s operated continually during the testing period.

Before the end of this year’s season, the factory will process about 50,000 t of coal. The test batch produced at the washing plant will be sent to Chelyabinsk Coke and Chemical Products Plant, which is part of the Mechel Group’s mining segment. Next year the Group plans to consider the possibility of exporting metallurgical coal to foreign consumers.

Earlier this month, Mechel reported better PCI demand, thanks to cost-cutting measures introduced at the company’s steel mills.

The company reported that metallurgical coal sales recovered in Q2 to 2.89 million t, a 2% increase from Q1.

Metallurgical coal sales had dipped by as much as 8% due to a downward revision in production plans for the North American coal unit formerly known as Mechel Bluestone.

Combined sales of metallurgical coal and pulverised coal injection (PCI) grew by over 6% in H1, as they “remain in demand by international steelmakers dude to global expense cuts,” Mechel CEO Evgeny Mikhel said in a statement.

Adapted from press release by Samuel Dodson

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