Moscow, Russia — June 5, 2013 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces signing a coking coal supply agreement with China’s Shasteel Group.
According to the signed agreement, Mechel Carbon (Singapore), trading subsidiary of Mechel OAO’s mining division, will directly supply Shasteel Group with 40,000 to 80,000 tonnes of coking coal a month from Russian Far East ports, starting from June 2013. Coking coal prices will be determined on a monthly basis.
Before May 2013, Mechel Carbon has supplied more than 500,000 tonnes of coking coal to Shasteel's main coke plant in Zhangjiagang, Jiangsu Province. Shasteel Group is the largest private steel mill in China, with an annual production capacity of up to 35 million tonnes of steel.
“Considering the current high market volatility, it is particularly important to us to have guaranteed sales of our products to the world's major steelmakers. Long-term contracts with giants such as Shasteel enable us to provide our production facilities with a stable load and diversify our markets, thus consolidating our status as a leading global coal exporter,” Mechel Mining Management Company OOO’s Chief Executive Officer Boris Nikishichev noted.