In 2014, Mechel reduced coal mining by 18% and steel production by 8%

In 2014, Mechel reduced its coal production by 18% as compared with 2013 to 22.624 million tons, and steel production by 8% to 4.269 million tons, the company reports.

In the reporting period, the pig iron production increased by 5% to 3.946 million tons. The steel output decreased due to the limitation of electric steel production at Chelyabinsk metallurgical plant and Izhstal.

"The decline in the coal production last year was mainly caused by stop of Mechel Bluestone (USA), as well as by the decrease in the production at Southern Kuzbass, which was associated with the implementation of programs to reduce inventory," - general director of Mechel Oleg Korzhov said.

He also noted that in 2014 Mechel’s enterprises worked in conditions of a minimum level of commodity prices, lack of working capital and total cost reduction, since significant amounts of money were directed to service the debt. Currently, negotiations with banks on restructuring of loans are continuing, and the company expects to complete them in the near future.