Mechel signs long-term deal with JFE Steel

Mechel, a leading Russian mining and metals companies, signs a three-year agreement for coal supplies with Japan’s JFE Steel corp., an Asian steel mill, lasting until August 2018.

The agreement inclused Mechel supply JFE with up to 1 million tpa of metallurgical coals – largely coking coal concentrate produced by Yakutugol Holding Co. and coking coal concentrate produced at the Elga coal deposit.

According to the agreement, Mechel will annually supply JFE Steel up to 1 million tonnes of metallurgical coals, mostly coking coal concentrate produced by Yakutugol Holding Company OAO, as well as coking coal concentrate produced at the Elga coal deposit. The price will be determined based on the market situation.

“We are grateful to our partner for their trust – this is Mechel’s first contract to be signed with a Japanese company for such a long term. We consider this three-year agreement with JFE Steel as an important step in implementing our strategy of diversifying our sales and strengthening ties with Asia Pacific’s key steelmakers. Considering global commodity markets’ volatility, we make it our priority to preserve our client base and ensure a stable flow of orders for our Group’s coal producers,” Mechel Mining Management Co.’s CEO, Pavel Shtark, commented.

As well as JFE Steel, Mechel supplies coal to several other leading Japanese steelmaking corporations. JFE Steel has been a client of Neryungri coal producers since 1985 and has proved to be Mechel’s longstanding and reliable partner.

Edited from press release by Harleigh Hobbs

Read the article online at: https://www.worldcoal.com/coal/03092015/mechel-signs-long-term-deal-with-jfe-steel-2808/