(EnergyAsia, May 7 2013, Tuesday) — Mechel OAO, a leading Russian mining and metals companies, said it has secured an agreement for the annual supply of 500,000 tons of coking coal to South Korean iron and steel maker POSCO Corporation for three years.
Mechel Carbon (Singapore) Pte Ltd, a trading subsidiary of the company’s mining division, which signed the deal on April 30, also agreed to supply POSCO 200,000 tonnes of PCI coal in 2013.
The prices for the products under the two contracts will be negotiated on a quarterly basis.
Mechel Mining Management Company’s CEO, Boris Nikishichev, said:
“This agreement is yet another proof of Mechel’s longstanding and stable partnership with POSCO, one of the world’s leading steelmaking companies. This contract with POSCO is one more step in implementing Mechel’s strategy of developing ties with the world’s largest steel producers and diversifying our markets.
“Considering high market volatility, a long-term agreement with POSCO and several other major consumers will enable Mechel to provide its coal mining enterprises with stable orders, which will help consolidate the company’s position as one of the world’s largest producers of metallurgical coal.”