“Yakutugol is working to resolve the violations within the designated time frame,” a Mechel spokeswoman said, according to Reuters. “The issue of removing the licenses cannot be examined until the time period expires.”
In addition, Mechel announced that it has received a written statement from the government natural resources ministry describing how the violations could be resolved.
According to the natural resources ministry, Mechel’s license violations relate to technical mining issues, production volumes and a number of other matters. The violations were announced following a lengthy audit at the Yakutugol facility between 2009 and 2011.
The ministry recommended that the Rosnedra licensing agency immediately revoke three Yakutugol licenses due ongoing violations. Rosnedra will meet over the next two weeks in order to decide whether it agrees with the ministry’s recommendations, Reuters reports.
Government reviews of production licenses are a common occurrence for corporations doing business in Russia.
Mechel is Russia’s largest coking coal producer and is headquartered in Moscow.