Bloomberg News

Mechel Falls in Moscow After Suspending Two Mines on Safety

December 06, 2011

(Updates with share price in second paragraph.)

Dec. 6 (Bloomberg) -- OAO Mechel, Russia’s largest producer of steel-making coal, fell the most in two weeks after it suspended work at two mines following complaints by the industrial safety watchdog.

Mechel fell 4.6 percent in Moscow today to 340 rubles a share. The company said it halted several facilities at the Lenin and New-Olzherassk mines, part of its Southern Kuzbass Coal Co. unit, on orders from the Siberian branch of the safety watchdog.

Mechel resumed output at the New Olzherassk mine last month after halting it in August 2010 because coal was spontaneously getting hotter and risking catching fire, according to a Nov. 16 statement.

--Editors: Alex Devine, Tony Barrett

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

To contact the editor responsible for this story: Torrey Clark at tclark8@bloomberg.net


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