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Mechel Signs Environmental Agreement to Reduce Impact on Water Bodies

Press Releases
November 17, 2020

Mechel signed an environmental agreement to reduce the impact on water bodies

Chelyabinsk, Russia - November 17, 2020 - Mechel PAO (MOEX: MTLR, NYSE: MTL ), a leading Russian mining and metallurgical company, announces the signing of a cooperation agreement in the field of ecology with the Governor of the Chelyabinsk Region Alexei Teksler. As part of the agreement, the Chelyabinsk Metallurgical Plant is implementing a set of measures to reduce the impact on water bodies and improve the treatment of industrial water waste by 2024.

The document was signed by the Governor of the Chelyabinsk Region Alexei Teksler and the General Director of PJSC Mechel "Oleg Korzhov.

Within the framework of the agreement, ChMK is implementing a set of water protection measures. The plant will stop discharging industrial wastewater through the Kashtak and Pershinsky outlets, equip the outlets of industrial water into the Balandinsky settling pond with new treatment equipment, modernize the circulating water supply systems of the main production departments, increase the use of water in a closed production cycle to reduce the volume of discharge, and increase the efficiency of the industrial system. - storm sewers.

“Ecology is not only clean air, but also clean water. And here it is very important that all our factories are within the environmental standards. Today we have fixed decisions within the framework of which, within the next few years, the discharge of industrial wastewater into the Miass River will almost completely stop. Mechel-Koks will completely zero the discharges, and ChMK will significantly reduce them: of the three storage ponds, two will completely stop discharging water into the river, and one will be completely modernized and will significantly reduce the environmental impact. The discharge will be lower than the norm, in terms of figures, the total volume will decrease by 85%. I am grateful to the enterprise that we have come to this agreement. This is a great achievement ", - said the Governor of the Chelyabinsk Region Alexei Teksler.

" We expect that the program of measures prescribed in this agreement will reduce wastewater discharge into the Miass River by 3 times, and the volume of investments will be about 1.5 billion rubles. We will understand the exact figures for reducing the load on the water body and the volume of investments after the completion of the environmental audit, which is also part of this agreement, and the development of design solutions. We have already started implementing a number of measures to reduce the load on water bodies. So, this year began cleaning the Balandinsky and Kashtak settling ponds from bottom sediments. This will increase the usable volume of water bodies, ensure better sedimentation of effluents so that well-purified water flows into Miass, ”said Mechel PAO General Director Oleg Korzhov.

The company also continues to implement environmental measures as part of the agreement signed in 2019 year of a four-party environmental agreement between Mechel, the Ministry of Natural Resources of the Russian Federation, Rosprirodnadzor and the government of the Chelyabinsk Region to reduce atmospheric emissions. The program is designed until 2024. Investments will amount to more than 10 billion rubles, while emissions of pollutants will decrease by 14.2 thousand tons per year.

The modernization affects all the main production areas of Chelyabinsk Metallurgical Plant and the Mechel-Coke plant. Some of the activities have already been completed. In particular, in March 2020, after modernization, two key industrial facilities were put into operation at Chelyabinsk Metallurgical Plant - blast furnace No. 4 and converter No. 1. During the re-equipment, both units were practically built anew, the converter was equipped with a modern three-stage gas cleaning system. Investments amounted to 4.5 billion rubles. At the Mechel-Coke plant during 2019-2020 reconstructed coke oven battery # 8, introduced closed-cooling technology for coke oven gas in capture shop # 1, completed modernization of pitch-coke block # 4. Implementation of the measures continues.

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Mechel PAO Ekaterina VidemanTel .: (495) 221-88-88ekaterina.videman@mechel.com

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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 businesses operate in a single production chain: from raw materials to high value-added products.

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Certain statements in this press release may contain assumptions or forecasts regarding future events or the future financial performance of Mechel PAO in accordance with the provisions of the 1995 US Securities Litigation Reform Act. We would like to warn you that these statements are only assumptions, and the actual course of events or results may differ materially from those stated. We do not intend to revise or update these statements. We refer you to the documents that Mechel periodically submits to the US Securities and Exchange Commission, including

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