PRIME cited Mr Oleg Korzhov company vice president for business planning and analysis as saying that Russia mining and metals group Mechel plans to invest about USD 1.0 billion to USD 1.1 billion in its projects in 2012.

Data on Mechel investments in 2011 were not available.

Mr Korzhov said that the major part of investment would be used to finance construction of a rail and structural mill, as well as on the development of the Elga coal deposit. In 2012, the company plans to complete construction of the mill having invested a total of about USD 300 million.

He said that investments in the Elga project amounted to USD 720 million at the beginning of 2011 and may reach USD 750 million to USD 780 million for the whole year. In 2012 and 2013, the company plans to spend about USD 450 million annually.

He also said that the company would continue working on the reconstruction of a furnace at the Beloretsk Ferroalloy Plant and the construction of the second stage of Sibirginskaya mine. As well, the company will continue investing in the Posiet Port and US based Bluestone Coal.

Total investments in the rail and structural mill are to amount to RUB 20 billion, RUB 5 billion of which will be spent on the construction of infrastructure. Investment in the first stage of the Elga coal deposit are estimated at RUB 33 billion to RUB 35 billion while the total cost of construction of a road to the Elga deposit stands at USD 1.36 billion.

(Sourced from www.prime-tass.com)