Russian mining and steel company Mechel announced that it has signed a major agreement for coking coal supplies with Baosteel Resources, which is a subsidiary of China Baowu Steel, China’s largest steelmaking group.
This new contract will be effective during the period between September 2019 and August 2020. Mechel will supply Baosteel Resouces with up to 700,000 mt of premium-grade coking coal. Under this agreement, 40,000 mt of this coal will be supplied monthly by Yakutugol Holding Company. The price of this product will be adjusted monthly.
“Our Baosteel Resources partners are well aware of our products’ high quality and our focus on customers that we adhere to. Our companies have many years of positive cooperation to go by. I am sure that as our Far East project, Elga coking coal deposit, gradually develops, our trade and economic ties have a great potential for growth in years to come,” Mechel’s deputy chief executive officer Pavel Shtark said.