MTL Mechel PAO

YAKUTUGOL LAUNCHES OPEN MINING AT DZHEBARIKI-KHAYA
Neryungri, Russia – March 9, 2017 – Mechel PAO (MICEX: MTLR, NYSE: MTL), one of
the leading Russian mining and metals companies, reports launching open coal
mining at Dzhebariki-Khaya open pit in Yakutia. The deposit is worked by
Yakutugol Holding Company AO, which is part of Mechel Group.
The facility has been implementing the program of shifting to open coal mining
for several years in joint effort with the Republic of Sakha (Yakutia)’s
administration. Open mining is more profitable and safe than underground mining.
Mining at the deposit has great social importance as the company supplies its
steam coal to housing and utilities providers in 16 of the republic’s regions,
including those beyond the Arctic Circle.
In summer 2016, underground mining was completely halted at the deposit and
stripping works began, with nearly half a million cubic meters of overburden
removed from the coal bed.
All necessary equipment for open pit mining, including an Atlas Copco drill rig,
excavators, a Liebherr tracked bulldozer, BelAZ trucks and ancillary equipment,
has been acquired for the pit. As the volume of mining and overburden works at
the pit increases, more equipment will be brought in.
The facility’s personnel has undergone conversion training in new skills for
working with the new mining and conveyor equipment.
“The open pit’s project capacity is 320,000 tonnes annually. It will enable us
to fully meet the fuel needs of Yakutia’s northern and central regions,” Mechel
Mining Management OOO’s Chief Executive Officer Pavel Shtark noted.

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Mechel PAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com
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Mechel is an international mining and steel company. Its products are marketed
in Europe, Asia, North and South America, Africa. Mechel unites producers of
coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and
electric power. All of its enterprises work in a single production chain, from
raw materials to high value-added products.
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Some of the information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Mechel, as defined in the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. We wish to caution you that
these statements are only predictions and that actual events or results may
differ materially. We do not intend to update these statements. We refer you to
the documents Mechel files from time to time with the U.S. Securities and
Exchange Commission, including our Form 20-F. These documents contain and
identify important factors, including those contained in the section captioned
“Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our
Form 20-F, that could cause the actual results to differ materially from those
contained in our projections or forward-looking statements, including, among
others, the achievement of anticipated levels of profitability, growth, cost and
synergy of our recent acquisitions, the impact of competitive pricing, the
ability to obtain necessary regulatory approvals and licenses, the impact of
developments in the Russian economic, political and legal environment,
volatility in stock markets or in the price of our shares or ADRs, financial
risk management and the impact of general business and global economic
conditions.