(EnergyAsia, September 12 2012, Wednesday) — Russian mining and metals company Mechel OAO said it signed two agreements at last week’s Asia Pacific Economic Cooperation (APEC) summit in the seaport of Vladivostok.
The NYSE-listed company has agreed to supply coal to Russia’s RAO Energy Systems of East, and to cooperate with South Korea’s STX Group to handle coal shipments, jointly develop ports and terminals in Russia’s Far East as well as cooperation in sea transit issues.
Mechel Mining CEO Igor Zyuzin and RAO Energy CEO Sergey Tolstoguzov signed the agreement setting forth the principles for their companies’ long-term cooperation, which could pave the way for the supply of up to 60 million tonnes of coal from the Elga deposit over a 15-year period if tests with RAO Energy subsidiary DTE prove successful. The Elga mine started production in August 2011.
RAO Energy is based in Blagoveshchensk city in the Russian Far East’s Amursk region near the Chinese border.
Mr Zyuzin said: “Mechel has longstanding partnership ties with DTE. For many years, DTE’s Neryungri and Khabarovsk power stations were supplied with steam coal from Neryungri open pit, which is part of Yakutugol.
“The cooperation agreement for supplies of Elga’s coal with RAO Energy Systems of East is a new stage in the business ties between our companies. This agreement will ensure guaranteed sales of products from Elga coal complex, which is a priority development project for our company.”
Separately at the APEC summit, Mr Zyuzin and Kang Duk-soo, chairman of STX Group, one of South Korea’s largest corporations, focusing on the shipbuilding, construction, marine and energy sectors, signed a long-term cooperation agreement covering coal shipments, joint participation in development of ports and terminals in Russia’s Far East as well as sea transit issues.
Since opening an official representative office in Seoul in 2009, Mechel Group said it has continued to develop strong partnership ties with South Korean customers.
“South Korean companies are traditional customers of Mechel’s coal products. Strengthening business ties with progressive-minded companies such as STX Group are key to successful implementation of our strategy to ensure sales for the Elga coal deposit’s coals,” said Mr Zyuzin.
At the summit, the Mechel Mining chief also met with the CEO of South Korean steel giant POSCO, Chung Joon-Yang, to follow up on their companies’ Framework Project Agreement signed last year to cooperate on steel industry, mining and logistics projects.