Russian coal mining company Kuzbassrazrezugol has signed a contract with South Korea's second largest steelmaker, Hyundai Steel, for the supply of 200,000 mt of pulverized coal injection (PCI) coal per year for the new blast furnaces at its Dangjin works, south of Seoul.
Under the terms of the contract, Kuzbassrazrezugol is to deliver PCI coal to Hyundai Steel over a period of five years, starting from late 2009. The financial details of the contract have not been disclosed.
Accordingly, Hyundai Steel is to use Russian pulverized coal for its two blast furnaces now under construction, which will have a combined capacity of eight million mt of crude steel per year. The furnaces are scheduled to start operations in 2011 and will produce steel for Hyundai Steel's auto affiliates Hyundai Motors and Kia Motors.
As SteelOrbis previously reported, in February 2009 Hyundai Steel concluded a long-term agreement with Mechel, one of the leading Russian mining and steel groups, to receive 100,000- 300,000 metric tons per year of K-9 grade coking coal. Under the terms of the agreement, the deliveries will start in April 1, 2010 for a five-year period, and will be made by Mechel's coal mining subsidiary Yakutugol, with the coking coal to be mined from its Neryungri open pit.