Wednesday, June 10, 2009
Wednesday, 10 June 2009
Mechel OAO, one of the leading Russian mining and metals companies, announces that its Mechel Trading AG subsidiary has signed a long-term coking coal supply contract with South Korean Hyundai Steel. In February 2009, visiting South Korea as a member of the Russian delegation headed by the Russian Federation Deputy Prime Minister Igor Sechin, Mechel OAO Chief Executive Officer Igor Zyuzin signed the agreement with South Korean Hyundai Steel to supply K-9 grade coking coal mined from Neryungri open pit.
On June 9, 2009, under the agreement, a commercial contract has been concluded between Mechel Trading AG, Mechel's international sales company, and South Korean Hyundai Steel Company.
Pursuant to the contract, coal will be supplied during the next five years starting from April 1, 2010. The supply volumes will reach 200,000 tonnes p.a.
The coal deliveries to South Korea will be performed on FOB basis via Mechel's trade Port Posiet subsidiary.
"Signing the commercial contract became another stage in developing partnership relations between Mechel and Hyundai Steel. In the context of current economic situation, export coking coal supplies became especially important to ensure utilization of our mining facilities. I am confident that today's signing will give additional impetus to the long-term and mutually beneficial relations between our companies," Mechel OAO Senior Vice President Vladimir Polin commented.
Mechel is one of the leading Russian companies. Its business includes four segments: mining, steel, ferroalloy and power. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, hardware, heat and electric power. Mechel products are marketed domestically and internationally.