OAO Mechel (MTL) headed to the lowest closing price in three weeks in U.S. trading after Russia’s environmental watchdog said a review into a unit will only be completed next week.
American depositary receipts of Moscow-based Mechel (MTLR), Russia’s largest producer of coal for steelmakers, fell 2.1 percent to $9.73 by 2:10 p.m. in New York, set for the lowest close since March 6, data compiled by Bloomberg show.
The environmental watchdog said it will complete a review of Mechel’s Yakutugol coal division only next week, after the Natural Resources Ministry reported “significant” license violations were found. The watchdog is preparing a report and will submit it to the Subsoil Resource Agency, which oversees licensing, after the inspections are completed on April 4, the regulator known as Rosprirodnadzor said today in a statement on its website. Both oversight bodies are part of the ministry.
Rosprirodnadzor replaced an earlier statement on its website, removing a line that said reports of “significant” license violations at the coal-mining unit were “erroneous.”
Mechel didn’t see where it could have significant violations and expected to resolve any issues after getting the report, Ekaterina Videman, a company spokeswoman, said March 22.
The stock is trading at a 2.6 percent discount to the company’s Moscow shares, the widest since March 5, data compiled by Bloomberg show. Mechel (MTLR) rose 1.4 percent to 290 rubles, or $9.99, in Moscow today. One New York-listed ADR is equal to one ordinary share traded on Russia’s Micex Index.
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