Mechel, one of Russia's leading mining and metals companies, has announced that it has signed a memorandum of understanding with Baosteel Resources, a wholly-owned subsidiary of major Chinese steel producer Baosteel Group, which provides for an increase of coal supplies to 1.4 million mt of coking coal a year. The agreement will be valid from April 2015 through March 2016, with a possibility of further prolongation. Prices will be determined on a monthly basis.
Mechel is fully meeting its obligations according to the earlier contract, which provides for supplies of 1.2 million mt of coking coal a year. Since April 2014 through December, over 1 million mt of coking coal was shipped to Baosteel enterprises in China's eastern and southern provinces, which accounts for 10 percent of Mechel's coal exports to Asia Pacific.
Mechel said that it is currently exporting over 70 percent of its mining division's products.