Russian mining firm Mechel has reportedly suspended a few of its coal operations amid deepening monetary losses.
The corporate has briefly halted operations at one mine in addition to sure open-pit coal mine sections, whereas considerably lowering manufacturing of unprofitable coal grades, based on a report by Reuters.
In its half-year report, Mechel acknowledged: “Below the present circumstances, we’ve got determined to droop manufacturing of unprofitable product varieties, partially redirecting sources towards merchandise which can be extra in demand in right this moment’s realities.”
The transfer comes because the nation’s coal sector grapples with low costs, worldwide sanctions and a powerful rouble, which is undermining the competitiveness of its exports, highlighted the information company.
Mechel reported a 28% decline in coal output to three.66 million tonnes (mt) within the first half of 2025 (H1 2025).
Gross sales of coking coal focus dropped 15% to 1.7mt and thermal coal gross sales slumped 21% to 1.37mt.
Its H1 loss widened to Rbs40.5bn ($501.17bn), in comparison with Rbs16.7bn within the earlier 12 months.
The corporate’s monetary place can be strained by a web debt burden of Rbs252.7bn, exacerbated by excessive rates of interest.
The Russian Authorities launched measures in Could to help the nation’s coal sector, together with deferring tax funds.
Mechel secured a three-year deferral on funds of tax arrears, charges and insurance coverage premiums totalling Rbs13.8bn.
Regardless of these efforts, the business continues to face important headwinds.
Mechel attributed the business’s struggles to declining coking coal focus costs, rising operational prices, rouble appreciation and sanctions-related constraints.
The corporate is in ongoing discussions with collectors to safe additional deferrals on principal debt repayments.
In keeping with the Rosstat statistics service, the mixed web losses of Russian coal corporations surged to Rbs185.2bn in H1 2025, up from Rbs7.1bn in the identical interval final 12 months.
Trade officers have warned that round 30 enterprises with a collective annual output of roughly 30mt are prone to chapter.
“Russian miner Mechel makes manufacturing cuts amid deepening losses” was initially created and revealed by Mining Expertise, a GlobalData owned model.
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