Media reports earlier in the day said Mechel was negotiating the acquisition of Oriel, a London-based chrome and nickel mining and processing company, for around $1.2 billion.
"Mechel is currently considering buying Oriel Resources Plc. The process is at the earliest stage, which means that a specific proposal might not follow," Mechel said in a press release.
Oriel owns the Tikhvin smelter near St. Petersburg and has two deposits in Kazakhstan, including the Voskhod chrome and the Shevchenko nickel projects.
Mechel's market capitalization is around $18.1 billion. Last year, the company increased its coal output by 25% to 21.2 million metric tons, and pushed rolled steel production up 9% to 5.1 million metric tons.