Mechel Announced Signing Long-Term Partnership Agreement with BelAZ

Mechel, JSC one of the leading Russian mining and metals companies, announced the signing of a long-term partnership agreement with BelAZ, JSC during the session of the Supreme State Council of the Union State of Russia and Belarus held on the level of heads of state.

Mechel JSC’s Chairman of the Board of Directors Igor Zyuzin and BelAZ JSC’s General Director Pyotr Parkhomchik signed the long-term partnership agreement in the presence of Russian President Dmitry Medvedev, Belarusian President Alexander Lukashenko, Russian Prime Minister Vladimir Putin, Belarusian Prime Minister Mikhail Myasnikovich, Chairman of the Federation Council of Russian Federation’s Federal Assembly Valentina Matviyenko, Chairman of the Republic Council of Belarus Republic’s National Assembly Anatoly Rubinov, Chairman of the State Duma of Russian Federation’s Federal Assembly Boris Gryzlov and Chairman of the Chamber of Representatives of Belarus Republic’s National Assembly Vladimir Andreychenko.

Mechel JSC and BelAZ JSC agreed in principle to sign the agreement for a 10-year partnership in August 2011, when Mechel JSC’s delegation headed by the company’s Chairman of the Board of Directors Igor Zyuzin visited Minsk by Belarusian Prime Minister Mikhail Myasnikovich’s invitation to discuss ways to improve Mechel Group’s ties with Belarusian enterprises.

The long-term partnership agreement provides for supplies of BelAZ-produced mining dump trucks to Mechel’s enterprises, supplies of spare parts for those trucks, setting up production of cargo platforms for BelAZ mining dump trucks on Mechel’s plants, certification of a Mechel subsidiary as one of BelAZ’s service centers in the Russian Federation.

Mechel Group’s mining division, which is one of BelAZ’s chief customers in Russia, plans to acquire mining dump trucks mainly for use on the Elga coal deposit with estimated reserves of 2.2 billion tons of coking coal, which is located in southeastern Republic of Sakha (Yakutia). Mining at this deposit, which is one of the world’s largest, commenced in August 2011.

“The signed agreement consolidates reliable and fruitful ties between Mechel and Belarusian Auto works. The attention and support given to our companies’ partnership on the highest level are proof of the strategic importance of our joint efforts. I consider this a key event and the first step which will help streamline and develop Mechel’s friendly ties with our current and future partners within the framework of the Union State and the Eurasian Economic Community. This is particularly important for Mechel Group, as our company owns assets in Kazakhstan and is a longstanding and efficient partner for companies based in other member-states of the Eurasian Economic Community,” Mechel’s Chairman of the Board of Directors Igor Zyuzin said.

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, nickel, ferrochrome, ferrosilicon, steel, rolled products, hardware, heat and electric power. Mechel products are marketed domestically and internationally.