Mechel PAO (MTL), a leading Russian mining and metals company, announces that its cooperation agreement with China’s major corporation Baosteel Resources has been prolonged.
Since April 2016 and until March 2017, Mechel will supply the Chinese company with up to 960,000 tonnes of premium-grade coking coal produced at Neryungrinsky Open Pit.
Most of this coal will be shipped via Mechel’s own Trade Port Posiet. The price will be determined on a monthly basis.
"We have established constructive ties with Baosteel Resources. In the future, Mechel intends to adhere to the best of practices in dealing with this company. We supply our partners with high-quality coking coal which has long become a trademark of Yakutia and all of Russia’s Far East. Baosteel Resources accounts on average for 30% of our coal exports to China, that has always been a priority market for us," Mechel’s Chief Executive Officer Oleg Korzhov commented.
Mechel is an international mining and steel company which employs over 67,000 people. Its products are marketed in Europe, Asia, North and South America, Africa.
Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and electric power. All of its enterprises work in a single production chain, from raw materials to high value-added products.