This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Mechel's Management Discusses Q2 2011 (1H 2011) Results - Earnings Call Transcript

So this way, we launched an important strategic project and it is almost impossible to overestimate the importance of this project for the company. When Elga reaches full capacity, Mechel will substantially improve its position among the largest global producers of coking coal.

During the first half of the year, all the efforts of the company in its mining division was aimed at accelerating the achievement of 100% capacity utilization at Neryungrinskaya washing plant at Yakutugol. We wish this objective by the end of June and from implementation of certain technical solutions the plant set a production record in July.

On the whole, since the start of the year, against the favorable background of prices in the markets of metallurgic coal from quarter-to-quarter we have been growing the production of this type of product. Although there were certain challenges due to spontaneous heating of coal, of the mine Olzherasskaya-Novaya in August last year and also the Sibirginskaya mine in June this year, because of this the production of coal mining of Novaya coal mines was suspended.

Currently, some new work has been done there to construct a new long wall features and although already in this quarter we plan to start new long wall face and to resume production of coal at Olzherasskaya-Novaya mine and in the next quarter at the Sibirginskaya mine. At the same time, we are constructing the second vertical shaft at the Sibirginskaya mine which will enable us to bring production there to 2.4 million tonnes of high quality coking coal already in 2014.

We continue acquiring mining complexes for other another production facility at the Southern Kuzbass in order to improve capacity for metallurgical coal, mining already in the beginning of next year. At our American enterprise, Bluestone, in the last several months, we put into operation new and also formerly idle mines, Spider Ridge and (inaudible). This is done to raise production of very valuable grade of coking coal that are in high shortage; I am talking about the low volatility and high volatility grades of coking coal.

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,265.99 +109.14 0.64%
S&P 500 2,011.36 +9.79 0.49%
NASDAQ 4,593.4250 +31.2360 0.68%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs