Mechel, one of the leading Russian mining and steel companies, has announced that its contract with Baosteel Resources, the raw materials-focused wholly-owned subsidiary of Chinese steelmaking major Baosteel, which provides for an increase in coking coal supplies to 1.2 million mt a year, has been prolonged.
According to the memorandum signed, Mechel Carbon Singapore will supply Baosteel Resources with up to 1.2 million mt of coking coal. The agreement will be valid from April 2014 through March 2015, with a possibility of further prolongation. Prices will be determined on a monthly basis. Mechel Carbon Singapore has fully met its obligations according to the earlier contract, having shipped a total of 960,000 mt of coking coal to Baosteel enterprises in China's eastern and southern provinces.
Thanks to the new agreement, Baosteel Resources will account for up to 10 percent of Mechel's coal exports to the Asia Pacific region.