Mechel, JFE Steel Prolong Coal Supply Contract Till 2021
June 07 2018 - 8:30AM
Mechel PAO (MOEX:MTLR) (NYSE:MTL)
, one of
the leading Russian mining and metals companies, reports prolonging
its long-term deal for coal supplies with Japan’s JFE Steel
corporation, a major steel mill in Asia Pacific, by another three
years.
The agreement will be in force until June
2021.
According to the agreement, Mechel will annually
supply JFE Steel up to 1.5 million tonnes of metallurgical coals —
coking coal concentrate produced by Yakutugol Holding Company AO as
well PCI produced by Southern Kuzbass Coal Company PAO. The price
will be determined based on the market situation. JFE Steel also
voiced its willingness to acquire additional volumes of coking coal
concentrate produced by Elgaugol OOO, which volumes and supply
conditions are to be discussed further.
JFE Steel has been buying Southern Yakutia’s
coals for over 30 years and has always been Mechel’s longstanding
and reliable partner.
“In 2015, we signed our first three-year
contract with JFE Steel whom we have been supplying with up to 1
million tonnes of coal annually. Prolongation of this contract
brings our ties to a whole new level. We are glad that the Japanese
side highly appreciates both our products’ quality and the future
of our partnership. With this contract, Mechel’s mining facilities
will be able to step up our supplies to Japan, with this country’s
share in our overall exports to go up to 15%,” Mechel Mining
Management Company OOO’s Chief Executive Officer Pavel Shtark
commented.
Mechel PAOEkaterina VidemanTel: + 7 495 221 88
88ekaterina.videman@mechel.com
Mechel is an international mining and steel
company. Its products are marketed in Europe, Asia, North and South
America, Africa. Mechel unites producers of coal, iron ore
concentrate, steel, rolled products, ferroalloys, heat and electric
power. All of its enterprises work in a single production chain,
from raw materials to high value-added products.
Some of the information in this press release
may contain projections or other forward-looking statements
regarding future events or the future financial performance of
Mechel, as defined in the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. We wish to
caution you that these statements are only predictions and that
actual events or results may differ materially. We do not intend to
update these statements. We refer you to the documents Mechel files
from time to time with the U.S. Securities and Exchange Commission,
including our Form 20-F. These documents contain and identify
important factors, including those contained in the section
captioned “Risk Factors” and “Cautionary Note Regarding
Forward-Looking Statements” in our Form 20-F, that could cause the
actual results to differ materially from those contained in our
projections or forward-looking statements, including, among others,
the achievement of anticipated levels of profitability, growth,
cost and synergy of our recent acquisitions, the impact of
competitive pricing, the ability to obtain necessary regulatory
approvals and licenses, the impact of developments in the Russian
economic, political and legal environment, volatility in stock
markets or in the price of our shares or ADRs, financial risk
management and the impact of general business and global economic
conditions.
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