FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

September 27, 2007

Commission File Number: 333-119497

MECHEL OAO

(Translation of registrant’s name into English)

Krasnoarmeiskaya 1,

Moscow 125167

Russian Federation

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F x   Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes o   No x

Note: Regulation S-T Rule 101(b)(c) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes o   No x

Note:  Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes o   No x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):           

 



MECHEL ANNOUNCES COMMISSIONING OF NEW DRILLING UNITS AT ITS SOUTHERN URALS NICKEL PLANT OAO SUBSIDIARY

Orsk, Russia – September 27, 2007 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces it has commissioned new self-propelled drilling rigs at the open pit mines of its subsidiary, Southern Urals Nickel Plant OAO.  Commissioning of the new equipment will enable Mechel to increase nickel ore mining efficiency while reducing production costs.

The new Russian-made self-propelled drilling rig, UKB-5S, was commissioned at the Sakharinsk open pit mine at the Southern Urals Nickel Plant OAO this month.  A similar unit was delivered to the Buruktal open pit mine administration last week.

The cost of commissioning two UKB-5S drilling rigs was more than RUR12.0 million (approximately US$480 thousand).  The designed capacity of each unit is approximately 400 running meters per month.

The acquisition of the drilling rigs will allow the plant to carry out independent operational exploration while obtaining data for reliable planning and managing quality of mined silicate-nickel ore.  The new equipment will help the miners define more precise boundaries of ore bodies, volumes and quality of mineral reserves.

The commissioning of the new self-propelled drilling rigs was implemented in line with Mechel’s mining subsidiaries technical re-equipment program.  Mechel OAO intends to invest approximately US$1.2 billion in its mining segment during 5 years.

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Mechel OAO
Ilya Zhitomirsky

Phone: + 7 495 221 88 88

ilya.zhitomirsky@mechel.com

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Mechel is one of the leading Russian mining and metals companies. Mechel unites producers of coal, iron ore, nickel, steel, rolled products, and hardware. Mechel products are marketed domestically and internationally.

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Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our

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Form 20-F. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

MECHEL OAO

 

 

 

 

 

By:

/s/ Igor Zyuzin

 

 

 

 

 

Name:

Igor Zyuzin

 

 

 

 

Title:

CEO

 

Date:  September 27, 2007

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