Mechel Increases Coal Supplies to China's Baosteel Corporation to Reach 1.44 MLN Tonnes
January 14 2015 - 9:50AM
Mechel OAO (NYSE:MTL)
, one of the leading
Russian mining and metals companies, announces
signing a memorandum of understanding with China's steelmaking
major Baosteel Resources corporation, which provides for an
increase of coal supplies to 1.4 million tonnes of coking coal a
year.
According to the memorandum, Mechel will supply Baosteel
Resources with up to 1.4 million tonnes of coking coal. The
agreement will be valid from April 2015 through March 2016, with a
possibility of further prolongation. Prices will be determined on a
monthly basis.
The memorandum also provides for a possibility of supplying
Baosteel with other Mechel products, such as PCI and steam coal, as
well as cooperation in other areas, including the possibility of
collaboration with the economic development institutes in Russia
and China.
Mechel is fully meeting its obligations according to the earlier
contract, which provides for supplies of 1.2 million tonnes of
coking coal a year. Since April 2014 through December, over 1
million tonnes of coking coal was shipped to Baosteel enterprises
in China's eastern and southern provinces, which accounts for 10%
of Mechel's coal exports to Asia Pacific.
"Long-term export contracts are particularly important for us in
the period of FX volatility as they provide Mechel with stable
foreign currency revenue. We are currently exporting over 70% of
our mining division's products," Mechel OAO's Chief Executive
Officer Oleg Korzhov commented.
Mechel is an international mining and steel company which
employs over 70,000 people. 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.
CONTACT: Mechel OAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com
Mechel PAO (NYSE:MTL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Mechel PAO (NYSE:MTL)
Historical Stock Chart
From Apr 2023 to Apr 2024