18.8.2011
18 August 2011 - EVRAZ Group S.A. (LSE: EVR) (the "Company") launches construction of a new coking coal mine Yerunakovskaya-VIII within its existing coal mining divisionYuzhkuzbassugol (Kemerovo region, Russia). The total investment in the project will bec.17 billion roubles (approximately US$590 million) spent over the next three years. The coalmine is planned to start operations by mid-2013. By the end of 2014, the mine is expected to reach a total production capacity of 2 million tonnes of raw coking coal per annum.
Mine development will start from the Yerunakovskiy-VIII deposit with the potential for further expansion into the Yerunakovskiy-Vostochnyi deposit. Joint development of the two deposits will provide long-term stable mining operations and a guaranteed supply of high-quality hard coking coal. The estimated reserves of the new areas being developed are in excess of 85 million tonnes.
The mine will be built in accordance with the highest standards of safety, health and environmental protection. It involves preliminary and in-seam methane drainage as well as construction of wastewater treatment facilities. Additionally, the Company will build a new handling capacity at Kazankovskaya railway station and a new local motorway for coal transportation.
This project is in line with EVRAZ's strategy to further develop its coal mining operations. Construction of the new mine will increase the level of vertical integration, providing its steelmaking facilities with high quality coking coal.
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For further information:
Media contact:
Oleg Kuzmin
VP, Corporate Communications
+7 495 937 6871
media@evraz.com
Investor contact:
Alexander Boreyko
Director, Investor Relations
+7 495 232 1370
ir@evraz.com
EVRAZ GROUP S.A. (EVRAZ) is a vertically-integrated steel, mining and vanadium business with operations in the Russian Federation, Ukraine, USA, Canada, Czech Republic, Italy and South Africa. In 2010, the Company produced 16.3 million tonnes of crude steel and sold 15.5 million tonnes of steel rolled products. EVRAZ's internal consumption of iron ore and coking coal is covered by its mining operations. EVRAZ's consolidated revenues for the year ended 31 December 2010 were US$13,394 million and consolidated adjusted EBITDA amounted to US$2,350 million.
