Bloomberg News

Mechel Gains in U.S. After Resuming Production in Russia

December 09, 2011

Dec. 9 (Bloomberg) -- OAO Mechel gained for the first day in four in New York after the company resumed output of coal at two mines in Russia and as U.S.-traded steel producers, including United States Steel Corp. and ArcelorMittal, rose.

Output of coal resumed in full at the Lenin and New- Olzherassk mines where work was halted earlier this week following complaints about work conditions there to a government safety watchdog, Mechel said in a statement today.

Mechel’s American depositary receipts rose 3.2 percent to $10.02 in New York. The stock lost 17 percent in the previous three sessions. Ordinary shares fell 1.7 percent to 312.20 rubles, or equivalent of $9.92, on the Micex in Moscow today, before the company announced it resumed output.

“They have opened the mines and the stock gained,” Ilya Kravets, a research analyst at brokerage ED Capital in New York, said via phone. “Today’s gains in U.S. markets also help it a lot.”

--Editors: Brendan Walsh, David Papadopoulos

To contact the reporters on this story: Halia Pavliva in New York at hpavliva@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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