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Elga coal deposit is connected to the unified energy system of Russia

Press Releases
Neryungri, Russia - September 17, 2019 - Mechel PAO (MOEX: MTLR, NYSE: MTL), a leading Russian mining and metallurgical company, announces the introduction of a substation of FGC UES PJSC (Rosseti FGC UES) 220 kV "Elgaugol" and 220 kV power lines "Prizeiskaya-Elgaugol". Electricity was supplied to FGC UES from the unified energy system of Russia. The transition to centralized power supply will allow LLC Elgaugol to significantly reduce the cost of energy consumption and switch to more efficient equipment.

The first stage of the project for the construction of external power supply facilities for the Elga coal complex has been implemented. FGC UES built a 220 kV "Elgaugol" substation, 1080 supports, expanded the existing 220 kV "Prizeyskaya" substation. The transmission line starts from the 220 kV Prizeiskaya substation located in the village of Verkhnezeysk, Amur Region, and reaches the field, to the 220 kV Elgaugol substation. The length of the transmission line is 270 km.

In the future, Rosseti FGC UES will carry out work on the construction of the second circuit of the 220 kV power transmission line Prizeiskaya - Elgaugol, as well as to expand the capacity of the 220 kV Elgaugol substation. The total investment by FGC UES for all stages will amount to 17.5 billion rubles.

As part of the first stage of the project, Mechel, for its part, provided the electric power infrastructure on the territory of the Elga coal complex. The company built substations "Alpha" and "Beta" of 35 kV, 159 supports, laid 26 km of distribution networks. Mechel Group's investments amounted to 470 million rubles.

The project began in 2010, the completion of the second stage is scheduled for 2023.

The launch of the power transmission line will ensure a reliable supply of electricity to production and household facilities and will eliminate the use of diesel generators.

“The creation of a power supply scheme for the Elga coal deposit is part of the Comprehensive Plan for the Modernization and Expansion of the Trunk Infrastructure, developed by the Government for the implementation of the May decree of the President of Russia. This is one of the largest projects of the Federal Grid Company in the Far East, and the region itself will be a priority in our investment program in the next five years, "said Andrey Murov, Chairman of the Management Board of FGC UES.

of electricity to the Elga coal complex is, without a doubt, a historic moment, towards which the team of Mechel has been going for a long time. Power transmission lines mean reaching a new level of production, increasing production volumes, as well as a higher quality of life for employees living in the shift camp on Elga, "said Igor Khafizov, General Director of Mechel Mining Management Company LLC.

“Completion of construction and connection of a power transmission line to the Elga coal complex opens up great prospects for further development of the deposit. We have already started purchasing more efficient mining equipment. We can convert the concentrator to electricity. As a result, the economics of the project will benefit, since the transition to electricity provides more than fivefold reduction in energy costs. Thus, another stage of our strategy to create a competitive world-class production complex was completed, "commented Mechel PAO CEO Oleg Korzhov.

Russia's largest Elga high-quality coking coal deposit is located in the south of Yakutia, in an inaccessible terrain 415 km from the city of Neryungri. The company employs over 1,600 people. In 2018, OOO Elgaugol produced 4.9 million tons of coal.

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Mechel PAO Ekaterina VidemanTel .: + 7-495-221-88- [email protected]

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Mechel is a global mining and metals company. The company's products are supplied to Europe, Asia, North and South America, Africa. Mechel unites producers of coal, iron ore, steel, rolled products, ferroalloys, heat and electricity. All enterprises operate in a single production chain: from raw materials to products with high added value.

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LLC "Elgaugol" is a company engaged in the development of one of the world's largest deposits of high-quality coking coal with reserves of about 2.2 billion tons in accordance with JORC standards. Located in the southeastern part of Yakutia. Production at the field began in 2011. In the same year, through traffic was opened along the 321-kilometer railway line built by Mechel, which connected the field with the Baikal-Amur Mainline.

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FGC UES PJSC ( Rosseti FGC UES) is one of the world's largest public power grid companies in terms of the length of lines and transformer capacity. FGC's area of ​​responsibility includes about 145.9 thousand km of high-voltage transmission lines and 958 substations

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