Mechel, one of the leading Russian mining and metals companies, and BELAZ have announced the signing of an agreement to create the joint Russo-Belarusian venture ElgaBelAvto for technical maintenance and repairs of BELAZ mining dump trucks in Yakutia.

The enterprise’s facilities will be located in Yakutugol Holding Company’s production area, and a subsidiary is planned to be created at the Elga Open Pit. ElgaBelAvto is due to fully meet the maintenance needs of Yakutugol Holding Company’s two largest coal open pits — Neryungrinsky and Elga — which include over 140 mining truck units in the medium term.

Investment in the project is estimated at a total of $9.5 million prior to 2018 and over 330 jobs are planned to be created. According to the agreement, ElgaBelAvto will begin working in late 2013- early 2014. In the future, the joint venture may offer its services to other BELAZ customers in Yakutia and neighbouring regions. “BELAZ is our reliable and longstanding partner, and today Belarusian-made mining trucks work at all of Mechel’s mining facilities. Creating a joint service center will enable Yakutugol Holding Company to cut equipment maintenance costs and set up the technical base for a large-scale increase of production at Yakutugol and the Elga coal deposit,” Mechel OAO’s Vice President for Commercial Activities Mikhail Urvantsev commented.