Mechel extends contract for the supply of Baosteel coal in China until 2019

Mechel, one of the leading Russian mining and metals companies, announces the extension of its cooperation agreement with Baosteel Resources, which is part of China's largest steel company, China Baowu Steel.

The agreement marks a long-term reliable cooperation between the two parties based on the principles of mutual benefit and trust, guaranteed by a stable long-term supply of coking coal.

The new agreement will be valid from July 2018 to June 2019. During this time, Mechel will provide Baosteel Resources with up to 700,000 tons of premium coking coal. According to the contract, most of this coal - up to 40,000 tons per month - will be supplied by Yakutugol Holding. The price will be determined on a monthly basis.

“The share of Russian coking coal in Chinese imports is about 7%. Mechel is the main Russian supplier of high quality coking coal to China, and in 2017 we shipped two million tonnes of coking coal to our Chinese customers. We have fully fulfilled our obligations under our previous contract with Baosteel Resources, which is our long-term and respected partner. We are glad that our fruitful cooperation continues, ”commented Oleg Korzhov, Chief Executive Officer of Mechel PAO.