The current deal extends revolving credit lines opened for Chelyabinsk Metallurgical Plant, Mechel-Service and Mechel-Energo by three to five years, Mechel stated.
Mechel chief financial officer Stanislav Ploschenko said "The loans will be used to finance operational activities, which will enable us to use our operating cash flow to re-finance a significant part of the Group’s short-term debt and thus dramatically improve the structure of our credit portfolio."
The company has also resumed mining at Southern Kuzbass Coal Company’s Sibirginsk Mine with a new mechanized complex being assembled at the mine.
Mechel Mining Management Company chief executive officer Boris Nikishichev said a lot of work was done on eliminating the reasons for the mine’s suspension in 2011, assembling the new high-performance equipment, ensuring mining safety and resuming production.
"Re-launching operations at the mine will allow us to increase production and sales of coking coal, which should have positive impact on this year’s results for the whole of the company’s mining division," added Nikishichev.
Potential coal reserves at the mine’s long wall face # 3-1-9 are estimated at 1.5 million tons, with the breakage face due to produce about 100,000 tons monthly.
All required documents for the long wall face’s operations have also been obtained.
Mechel suspended mining at Sibirginsk Mine last June due to coal self-heating in the mined-out area.
