Mechel plans to increase coal production in 2026 amid market recovery

According to local media reports, Mechel, one of Russia's leading mining and steel groups, plans to significantly increase coal production in 2026, targeting 11-12 million tons, compared with an expected 7.3-7.6 million tons in 2025, reflecting the difficult market environment at the beginning of the year, which included price reductions and operational adjustments. The company noted that the potential for price increases could further support the planned increase in coal production.

Growth target for 2026

Mechel CEO Igor Hafizov said that the company aims to increase production by at least 1.5 times, predicting coal production at the level of 11-12 million tons in 2026. The company also plans to expand the production of iron ore and iron ore concentrate at its mining assets.

Operational adjustments and prospects

In 2025, Mechel's optimization measures included suspending some unprofitable underground operations in Southern Kuzbass and other mining areas while maintaining a focus on production efficiency. The company reported a return to break-even after prices improved in the second half of the year.