MECHEL OAO ANNOUNCES LAUNCH OF CONSTRUCTION OF GRINDING-MIXING COMPLEX FOR
PORTLAND BLAST-FURNACE SLAG CEMENT PRODUCTION

Chelyabinsk, Russia – December 09, 2010. - Mechel OAO (NYSE: MTL), one of the
leading Russian mining and metals companies, announces launch of construction of
complex for Portland blast-furnace slag cement production with 1.6 mln tonnes
capacity by its subsidiary, Mechel Materials OOO. The construction is held on
the premises of Chelyabinsk Metallurgical Plant OAO.
The assembly works of the main manufacturing equipment at grinding-mixing
complex with capacity of 1.6 mln tonnes of Portland blast-furnace slag cement
per annum will start in December this year. The main raw material will be blast
furnace slag produced by Chelyabinsk Metallurgical Plant OAO, which will result
in non-waste production of pig iron at the facility. This complex will be the
first Russian facility producing high quality Portland blast-furnace slag cement
of certain grade (CEMIII/А).
Portland blast-furnace slag cement is widely used for production of reinforced
concrete goods and constructions that require curing as well as production of
constructions used in humid conditions or hot workshops, and building of ground
and underground constructions which are exposed to hostile conditions. This
material is widely used in construction industry and proved its efficiency while
building hydroelectric power plants and workshops of steel and heavy industries.
The general contractor is Austrian FMW GmbH, the financing is provided by
Unicredit (Austria) and Commerzbank Aktiengesellschaft (Germany). The amount to
be invested is estimated at 110 mln euros. The commissioning of a
grinding-mixing complex is planned for the 2nd quarter of 2012.
Oleg Matyushenko, CEO of Mechel Materials OOO, commented on the event: “The
commissioning of the complex for Portland blast-furnace slag cement production
will allow to arrange cost-effective production based on slag, produced by
Chelyabinsk Metallurgical Plant, which is a by-product in pig iron production.
Employing this method will help both utilization and rational use of waste
products from blast-furnace workshop at Chelyabinsk Metallurgical Plant, which
will allow for additional synergy.”


Mechel OAO
Ekaterina Videman
Phone: + 7 495 221-88-88
ekaterina.videman@mechel.com
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Mechel is one of the leading Russian companies. Its business includes four
segments: mining, steel, ferroalloy and power. Mechel unites producers of coal,
iron ore concentrate, nickel, steel, ferrochrome, ferrosilicon, rolled products,
hardware, heat and electric power. Mechel products are marketed domestically and
internationally.
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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.