Mechel PAO, one of the leading Russian mining and metals companies, has prolonged its long-term deal for coal supplies with Japan's JFE Steel Corp, a major steel mill in Asia Pacific, by another three years until June 2021.
According to the agreement, Mechel will annually supply JFE Steel with up to 1.5 million tonnes of metallurgical coals — coking coal concentrate produced by Yakutugol Holding Company AO as well PCI produced by Southern Kuzbass Coal Company PAO. The price will be determined based on the market situation.
JFE Steel also voiced its willingness to acquire additional volumes of coking coal concentrate produced by Elgaugol OOO, which volumes and supply conditions are to be discussed further.
JFE Steel has been buying Southern Yakutia's coals for over 30 years and has always been Mechel's longstanding and reliable partner.
"In 2015, we signed our first three-year contract with JFE Steel whom we have been supplying with up to 1 million t of coal annually." Mechel Mining Management Company OOO's CEO, Pavel Shtark, commented.
"Prolongation of this contract brings our ties to a whole new level. We are glad that the Japanese side highly appreciates both our products' quality and the future of our partnership. With this contract, Mechel's mining facilities will be able to step up our supplies to Japan, with this country's share in our overall exports to go up to 15%." he said.
(Writing by Becky Du Editing by Tammy Yang)
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