Bloomberg News

Mechel Falls Most in Eight Weeks as Work Suspended for Safety

February 12, 2012

Feb. 10 (Bloomberg) -- OAO Mechel, Russia’s largest coal producer for steelmakers, lost the most in eight weeks in New York as work was suspended at several facilities at the New- Olzherassk mine under order from the country’s safety regulator.

Mechel’s American depositary receipts sank 6.8 percent, the most since Dec. 19, to $10.68 in New York. Shares in Moscow dropped 3.7 percent to 328.7 rubles, or the equivalent of $10.94.

Production at the mine may resume “shortly” and the temporary halt won’t affect the “operational commitments” of the company’s Southern Kuzbass unit in Siberia, Mechel said today in a statement.

--With assistance from Ilya Khrennikov in Moscow. Editor: Marie- France Han

To contact the reporter on this story: Leon Lazaroff in New York llazaroff@bloomberg.net

To contact the editor responsible for this story: Emma O’Brien at Eobrien6@bloomberg.net


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