Mechel, one of the leading Russian mining and steel groups, has announced that it has signed a long-term agreement for the supply of 100,000- 300,000 metric tons per year of K-9 grade coking coal to South Korea's second largest steel producer Hyundai Steel.
Under the terms of the agreement, the deliveries will start in April 1, 2010 for a five-year period, and will be made by Mechel's coal mining subsidiary Yakutugol, with the coking coal to be mined from its Neryungri open pit.
"South Korean-based companies, including Hyundai Steel, are traditionally consumers of Yakutian coking coals. The long-term agreement for the delivery of K-9 grade coking coals will enable Mechel to ensure more sustainable utilization of Yakutugol's production capacity and to ensure sales as part of the output from the Elga deposit in the long term," Mechel's senior vice president Vladimir Polin commented.
Currently, Mechel supplies about one million metric tons of coal per year to its South Korean customers.