By Lukas I. Alpert
MOSCOW--Russian coal producer OAO Mechel (MTL) said Tuesday that
it has signed a three-year deal with South Korea's POSCO
(005490.SE) to supply coking coal.
The deal between the Korean steelmaker and Mechel subsidiary
Mechel Carbon (Singapore) Pte. Ltd. is for 500,000 tons of coal per
year, the company said.
The price will be determining on a quarterly basis, the company
said. The two firms also signed a one-year contract for the supply
of 200,000 tons of PCI coal in 2013.
"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," Mechel
Mining Management Chief Executive Boris Nikishichev said.
Earlier in April, Mechel announced a deal with China's Baosteel
Resources to supply 960,000 tons of coking coal annually.
Write to Lukas I. Alpert at lukas.alpert@dowjones.com
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