MECHEL ANNOUNCES STARTING NEW PRODUCTION AT KORSHUNOV MINING PLANT

Zheleznogorsk-Ilimsky, Russia – June 24, 2009 – Mechel OAO (NYSE: MTL),one of
the leading mining and metals companies, announces starting production for
repair of type 2 BC-105 dump cars at its Korshunov Mining Plant OAO subsidiary
and obtaining a permit for the repaired dump cars to be used at railways of
Russia.
To establish the production reconstruction of repairs and mechanics shop was
performed, high technology equipment was purchased, and the staff of all
services and units involved in process technology was additionally trained.
Capital investments in the new production amounted to more than 42 million
rubles and 34 new occupations were provided extra.
All activities to start new production including process technology and
specifications-supplied unique equipment development as well as construction and
erection works were performed in-house without involvement of design companies
and contractors allowing for costs minimization.
The production to perform capital and depot service repairs of type 2 BC dump
cars of carrying capacity of 105 tons used at the plant for ore transportation
from Rudnogorsky and Tatyaninsky mines along railways of Russia.
Previously dump cars repairs were performed at special institutions in the city
of Irkutsk. New production will allow Korshunov Mining Plant to make savings
from cars transportation to repairs location in the amount up to 5.5 million
rubles per year.
Repairs and electromechanics shop of Korshunov Mining Plant has successfully
completed testing for professionalism and qualifications of the staff and
availability of all required equipment and detection tools for repairs at the
plant to obtain the permit for repairs works. Therefore, inspecting authorities
have confirmed full compliance with process technology and safety regulations of
Russian Railways JSC.
Capacity of new production provides for Korshunov Mining Plant annual needs for
type 2 BC dump cars repairs of 180 dump cars per year.
“Starting this production in line with crisis management program implementation
allows for significant optimization of our production costs. We are proud of our
staff that is able to prove their highest professional level not only at the
enterprise but on the national scale as well. Currently Korshunov Mining Plant
is the only non-dedicated Russian enterprise authorized by Russian Railways JSC
to perform dump cars repairs and use them along all Russian railways”, Mechel
OAO Senior Vice President Vladimir Polin commented.
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Mechel OAO
Ilya Zhitomirsky
Phone: + 7 495 221 88 88
ilya.zhitomirsky@mechel.com
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Mechel is one of the leading Russian companies. Its business includes four
segments: mining, steel, ferroalloy and power. Mechel unites producers of coal,
iron ore concentrate, steel, rolled products, ferroalloys, hardware, heat and
electric power. Mechel products are marketed domestically and internationally.
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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.