Mechel reports signing a memorandum for supply of the Elga deposit’s coal with China’s Jidong Cement
OREANDA-NEWS. Mechel PAO (MICEX: MTLR, NYSE: MTL), one of the leading Russian mining and metals companies, reports signing a memorandum for supply of the Elga deposit’s coal with China’s Jidong Cement, one of the world’s top five cement producers.
According to the memorandum, Mechel will supply its Chinese partners from two to three million tonnes of steam coal (up to 250,000 tonnes monthly) mined at Mechel’s coal facilities — Elgaugol OOO, Yakutugol Holding Company AO and Southern Kuzbass Coal Company PAO. Supplies will be made starting in December 2016 and until December 2017. Prices will be adjusted on a monthly basis.
“This is the first long-term agreement for the next year that our company has signed since coal prices recouped globally. We are particularly pleased that it involves increase of coal supplies from Elga, a new flagship of Russia’s coal industry in the Far East. With this contract, Jidong Cement becomes the top foreign consumer of Elga’s products,” Mechel Mining Management OOO’s Chief Executive Officer Pavel Shtark noted.
Mechel is an international mining and steel company which employs 66,000 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.