Mechel chief operating officer Alexey Ivanushkin said the company had achieved record financial results, with revenues increasing 15.6% to $4.4 billion and operating income increasing 40.7% to $725.7 million.

“The past year was the best in Mechel’s history, as we continued our steady development of the company, guided by our strategy of increasing mining segment output and raising profitability of our steel segment operations,” Ivanushkin said.

Coal production for 2006 reached 17 million tonnes, up 9% on 2005 results.

Of the coal mix, coking coal output was 9.7Mt (up 13%) and steam coal was up 4% at 7.3Mt.

“Based on the current favourable pricing environment and current outlook, we are positive regarding the prospects of our mining subsidiaries and will maximise our profit by further increasing production volumes and controlling costs," Ivanushkin said.