FAS to fine Mechel $30 mln

In all likelihood, the Mechel affair is history, which means that metal makers and investors alike can breathe a sigh of relief. FAS will fine the metal major $33 mln and order the company to lower its coal concentrate prices by 15% starting September 1, 2008.

Yesterday, the Federal Antimonopoly Service (FAS) handed down the final verdict in the Mechel affair. The metal producer is to be fined Rb 790 mln (apr. $33 mln), i.e. 5% of the domestic coking coal market turnover in 2007, and also cut coking coal concentrate prices by 15% starting September 1 by the end of the year.