Russian mining and steel group Mechel has announced the signing a three-year contract with South Korean steel producer POSCO for supply of coking coal.
The agreement, signed on April 30, stipulates that Mechel Carbon (Singapore) will supply POSCO with 500,000 mt of coking coal per year.
In addition, Mechel Carbon also signed with POSCO a one-year contract for supply of 200,000 mt of pulverized coal injection (PCI) coal in 2013.
The price in these contracts will be determined by mutual agreement on a quarterly basis.