Bloomberg News

Raspadskaya May Restart Damaged Mine in a Month, Governor Says

August 11, 2010

OAO Raspadskaya, a Russian producer of coal for steelmaking, may restart in a month a mine damaged by blasts that killed 90 people, according to Aman Tuleyev, governor of the Kemerovo region where the company is based.

The mine will be able to produce half the volume it did before the explosions in May, Tuleyev told Prime Minister Vladimir Putin today, according to Putin’s website.

Alexander Andreev, deputy chief executive officer at Raspadskaya, wasn’t immediately available for comment.

Credit Suisse Group AG analysts raised their price estimate for the company by 20 percent to $6 a share on the “potentially faster-than-expected reconstruction,” they said by e-mail.

The stock soared as much 5.5 percent to 140.52 rubles, its highest level since June 24, and traded 4.7 percent higher at 139.50 rubles by 6 p.m. in Moscow.

To contact the reporters on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net;

To contact the editor responsible for this story: Amanda Jordan at ajordan11@bloomberg.net.


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