Mechel to Develop Russian Coal Mine
Russia's Mechel OAO has signed a loan agreement to finance the construction of the second line at the Sibirginskaya mine, owned by its subsidiary Southern Kuzbass Coal.
Under the agreement, a loan of R6.19bn ($210m), granted by Transcreditbank OAO, will be used to finance equipment acquisition, the construction of the surface complex’s buildings and excavation for the mine’s second line.
According to Mechel, the plant has reserves of over 90 million tons.
Mechel CFO Stanislav Ploshchenko said the launch of the mine’s second line will double the production capacity of the plant.
The plant's first line is operating with a design load of 1.2 million tons per annum and the second line is expected to be launched in 2014.