The Russian steel and iron ore producer Metalloinvest Holding (Metalloinvest) has announced that it has signed a cooperation agreement with the Chinese steel giant Baosteel Group, under the terms of which Metalloinvest will supply two million mt of iron ore and iron ore pellets to Baosteel during 2011.
Accordingly, the iron ore supplies will be delivered by sea and railway. Prices for the supplies will be linked to the international market rates as at the date of the contract signing. In addition, both parties have agreed to conduct technological exchanges for maximum mutual benefits in use of iron ore materials.
"I am confident that the agreement signed today will serve as the basis of a long-term and mutually beneficial cooperation," Metalloinvest CEO Eduard Potapov said, adding that "long-term contracts for iron ore material supplies allow the planning of investment programs for the holding's plants."
The share of China in Metalloinvest's overall sales in 2011 is estimated at 15 percent.