Vorskla Steel Bulgaria EOOD, which belongs to Ukrainian businessman Konstantin Zhevago, has announced that on July 11 it signed a tolling agreement with Bulgaria's largest steelmaker Kremikovtzi.
According to the agreement, Vorskla Steel will ship 170,000 mt of iron ore to Kremikovtzi within the next two days. In addition, under the terms of the agreement, the state monopolies of Bulgaria will also supply the country's steel giant with coking coal, natural gas, power supplies and also will provide transportation.
In addition, the terms of agreement also stipulate the payment of production costs to Kremikovtzi for the processing of supplied iron ore. All products, which will be manufactured at Kremikovtzi from iron ore supplied by Vorskla Steel, will be then exclusively marketed by Vorskla Steel, including both domestic and export sales.
The tolling agreement with Vorskla Steel is the second contract of this kind concluded by Kremikovtzi since beginning of the month. The first tolling agreement was signed on July 4, 2008 with the world's largest steelmaker ArcelorMittal. Under the terms of this agreement, ArcelorMittal is to supply enough raw materials to produce 60,000 mt of steel products a month.