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Mechel wraps up Elga railway project

RUSSIAN producer Mechel OAO has completed the last section of a 321 kilometre railway track proje...

Donna Schmidt
Mechel wraps up Elga railway project

The last section of the track was laid in December 2011, and the entire route from Baikal-Amur Mainline’s Ulak station to the Elga deposit is now open for traffic.

Mechel’s $US1.25 billion (40 billion rubles) project first began in February 2008.

In the time since the project commenced, about 70 Russian contractors were involved in construction, all within the oversight of project general contractor Metallurgshakhtspetsstroy ZAO, another Mechel division.

The company said that the railway, which also included the erection of 76 bridges, came to fruition despite difficult climatic and geological conditions.

Mining at the Elga open pit property began last August, and by the end of December had produced about 200,000 tonnes.

“The railway's completion is one of the most complicated and important stages in implementing the unique project of developing the Elga coal deposit, which is one of the world's largest coking coal fields,” Mechel board chairman Igor Zyuzin said.

“The launch of direct railway access to Elga coal complex will in 2012 significantly facilitate delivery of material necessary to increase production at Elga, as well as allow rail transportation of coal mined at the deposit.”

He noted that the scale of the rail project was unique for the industry.

“Completion of railway construction together with the launch of mining at the deposit in such a short time, considering the 2008-2009 crisis, once again proves that Mechel is one of the few companies with the potential to handle a project of such magnitude,” he said.

Moscow-based Mechel Mining is Russia's top coking coal miner, and among the world’s largest coking coal concentrate producers.

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