Mechel might slash investment by half to $300 mln in 2014
MOSCOW. Oct 3 (Interfax) - Mechel now estimates that its investment program in 2014 will total $300 million rather than the previously expected $600 million, the Russian steel and coal company told Interfax.
The possible revision is due to the completion of major projects and the company securing project financing from VEB for the development of the Elga coal field. Mechel therefore plans to invest next year primarily in maintaining capacity, on which it annually spends $150 million-$200 million, a company spokesman said.
The Mechel group previously estimated its investment program for 2013-2015 at $1.6 billion, including $549.9 million for maintaining capacity. It was reported earlier that capex will total $400 million this year.
The Mechel group includes production of coal, iron ore concentrate, steel, rolled products, ferroalloys, high value added products, as well as generation of electricity and heat, three commercial ports and a transport operator.
Mechel's principal beneficiary is group chairman Igor Zyuzin. The free float (ADR) is about 30%.