The Russian iron ore and steel producing company Metalloinvest Holding (Metalloinvest) has announced the conclusion of a series of long-term contracts for the supply of iron ore to Russian and Ukrainian steelmakers.
According to the agreement signed with Russian steelmaker Magnitogorsk Iron and Steel Works (MMK), Metalloinvest's iron ore producing facility LGOK will supply the mill with 100,000 mt of iron ore concentrate per month. The price of the contract will be fixed till the end of 2008.
Furthermore, a three-year contract has been signed with Russian steel producer Tulachermet, under which LGOK will ship 50,000 mt per month of iron ore concentrate to the mill, while another Metalloinvest iron ore subsidiary MGOK will ship 80,000 mt of pellets per month to Tulachermet as part of the same contract. The prices for this contract will be revised on a monthly basis.
In addition, Metalloinvest has inked a three-year supply agreement with Ukrainian flat producer Ilyich Iron and Steel Works of Mariupol (Ilyich). Under the terms of the contract, Metalloinvest's LGOK will supply Ilyich with 100,000 mt of iron ore concentrate per month.
The contracts in question have extended Metalloinvest's practice of concluding long-term supply agreements. Previously Metalloinvest concluded such agreements with Russian steel producers NLMK and ZapSib.