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PJSC Mechel : MECHEL LAUNCHES DEVELOPMENT OF SIVAGLINSKOYE IRON ORE DEPOSIT

EquityStory.RS, LLC-News: PJSC Mechel / Key word(s): Investment PJSC Mechel : MECHEL LAUNCHES DEVELOPMENT OF SIVAGLINSKOYE IRON ORE DEPOSIT 09.09.2021 / 11:30 MSK The issuer is solely responsible for the content of this announcement. MECHEL LAUNCHES DEVELOPMENT OF SIVAGLINSKOYE IRON ORE DEPOSIT

Moscow, Russia - September 09, 2021 - Mechel PAO (MOEX: MTLR, NYSE: MTL), one of the leading Russian mining and metals companies, reports developing design estimate and approval documentation for launching works at the Sivaglinskoye iron ore deposit. The company will invest approximately two billion rubles in this project by the end of 2022. The deposit will be developed by open mining.

The Sivaglinskoye iron ore deposit is 135 kilometers north of Neryungri and nine kilometers away from a railway link to the Baikal-Amur Mainline. It is also three kilometers away from a 110-kilovolt power line connected to Neryungrinskaya Regional Power Plant. Mechel also holds the subsoil license to the Pionerskoye iron ore deposit eight kilometers away from the Sivaglinskoye deposit, which will enable the company in the long run to create a single enterprise uniting the two ore fields.

The Sivaglinskoye deposit has a surface size of 2.2 square kilometers, with 21 million tonnes of iron ore of estimated reserves for open mining, and with average iron content of 48.6-53.3%. Material and technical resources from Mechel Group's Yakutugol Holding Company will be involved in its development among others.

At this time, the company has completed geological exploration surveys worth a total of 385 million rubles. Sivaglinskoye's ore has been successfully processed in a series of industrial tests conducted at Chelyabinsk Metallurgical Plant. Mechel is currently undergoing procedures for acquiring necessary mining equipment. Sivaglinskoye's pilot commercial development is due to begin in the fourth quarter of 2022, with some 300-400,000 tonnes of blast-furnace and sinter ores mined before that year's end. Starting in 2023, the deposit's annual capacity is due to go up to 1 million tonnes, with the complex's total capacity to reach 3.5 million tonnes with the launch of Pionerskoye.