(EnergyAsia, September 8 2011, Thursday) — Mechel OAO, a leading Russian mining and metals company, said it has jointly established Mechel Somani Carbon Private Limited with the Somani Group to distribute metallurgical coals in India.

Mechel Carbon AG, a subsidiary of Mechel OAO’s mining division Mechel Mining OAO, owns a 51% stake in the new company with Northern Exim Private Limited, a member of India’s Somani Group holding the remaining 49%.

Mechel Somani Carbon will operate in an emerging industrial zone on India’s east coast, 20 kilometers from the major port of Vizag.

Mikhail Urvantsev, Mechel OAO’s Vice-President for Commercial Activities, said:

“We have been working with Indian consumers of our coals for several years and consider India to be a promising and strategically important market. Until now we have been delivering our products only to large-scale consumers. In setting up this joint venture, we will expand the Indian market for us due to a large number of consumers desiring to acquire smaller-sized shipments of our products.”