Russia’s Yakutia governor says decision on Mechel mine due in Q1

A decision on the future of the Elga coal project, one of the world’s largest coking coal deposits, is likely in the first quarter of 2020, the regional governor said in an interview.

Expansion of the mine, first developed by Russian steel and coal producer Mechel, has stalled in recent years as the project in the remote Yakutia region of Russia’s Far East demands significant investment to reach its annual operating capacity of 30-million tonnes.

Mechel, controlled by businessman Igor Zyuzin, has been weighing its options regarding Elga, its biggest growth asset, for some time as it continues talks with creditors over restructuring $6-billion in loans.