Russian mining and steel group Mechel has announced that its cooperation agreement with Baosteel Resources, which is part of Chinese steelmaker China Baowu Steel, has been prolonged.
Accordingly, from April this year to March 2018, Mechel will supply Baosteel Resources’ facilities with up to 960,000 mt of premium-grade coking coal mined in Southern Yakutia.
Mechel’s CEO Oleg Korzhov stated that in 2016 Mechel’s supplies to Baosteel Resources accounted for 15 percent of its total coking coal sales to third parties. According to Mr. Korzhov, due to large-scale structural changes in China’s coal industry, demand for coking coal will remain stable in that country throughout the current year.