Mechel Prolongs Coal Contract With China’s Baosteel Resources Until 2019
July 04 2018 - 8:00AM
Mechel PAO (NYSE:MTL) (MOEX:MTLR),
one of
the leading Russian mining and metals companies, reports
prolonging its cooperation agreement with Baosteel
Resources which is part of China Baowu Steel, China’s largest
steelmaking group.
The agreement notes long-lasting reliable
cooperation between the two sides, based on principles of mutual
benefit and trust, guaranteed by stable long-term supplies of
coking coal.
The new agreement will be valid for July 2018 to
June 2019. During this time, Mechel will supply Baosteel Resources’
facilities with up to 700,000 tonnes of premium-grade coking coal.
According to the contract, a major part of this coal — up to 40,000
tonnes monthly — will be supplied by Yakutugol Holding Company AO.
The price will be determined on a monthly basis.
“Russian coking coal’s share in Chinese imports
is about 7%. Mechel is a chief Russian supplier of high-quality
coking coal to China, in 2017 we have shipped two million tonnes of
coking coal to our Chinese clients. We have fully met our
obligations on our previous contract with Baosteel Resources, which
is our longstanding and respected partner. We are glad that our
fruitful cooperation continues,” Mechel PAO’s Chief Executive
Officer Oleg Korzhov 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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