Mechel Signs Long-Term Contract with China’s Baosteel Resources
Friday, August 9th, 2019
Mechel PAO (NYSE: MTL, MOEX: MTLR), one of the leading Russian mining and metals companies, reports signing a major contract for coking coal supplies with Baosteel Resources which is part of China Baowu Steel, China’s largest steelmaking group.
Baosteel Resources is Mechel’s longstanding strategic partner in Asia Pacific. The contract notes strong business ties between the two sides, based on mutual profit and trust.
The new agreement will be valid starting September 2019 to August 2020. During this time, Mechel will supply Baosteel Resources’ facilities with up to 700,000 tonnes of premium-grade coking coal. According to the contract, a major part of this coal — up to 40,000 tonnes monthly — will be supplied by Yakutugol Holding Company AO. The price will be determined on a monthly basis.
“Our Baosteel Resources partners are well aware of our products’ high quality and our focus on customers that we adhere to. Our companies have many years of positive cooperation to go by. I am sure that as our Far East project, Elga coking coal deposit, gradually develops, our trade and economic ties have a great potential for growth in years to come,” Mechel PAO’s deputy Chief Executive Officer Pavel Shtark noted.http://www.mechel.com