"We believe that given the current market conditions and Mechel's strong indicators, we will be able to offer new terms of dividend payment in the future," CEO Igor Zyuzin said. "The new dividend rate is in line with the company's strategy and desire to reward shareholders for their confidence in Mechel, as well as use the best international corporate standards in its work."
Mechel also said it had decided to make adjustments to its investment program for 2006-2010, which envision allocating additional funds to expand the mining segment.
The total budget of the revised program is $1.1 billion. Investment in the mining segment will total some $750 million, which reflects the increasing significance Mechel attaches to mining. Moreover, the company said projects designed to raise production quality would also be financed.
The Mechel group was established in March 2003 and is a leading Russian company in the mining and metallurgy industry. It comprises several metal combines and plants in Russia, Romania and Lithuania.
