Mechel PAO, one of the leading Russian mining and metals companies, has reported that it will be prolonging its long-term deal for coal supplies with Japan’s JFE Steel Corporation’s major steel mill in Asia Pacific by another three years. The agreement will be in place until June 2021.
According to the agreement, Mechel will annually supply JFE Steel up to 1.5 million t of metallurgical coals – metallurgical 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 metallurgical 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 tpy of coal. 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%,” Mechel Mining Management Company OOO’s Chief Executive Officer, Pavel Shtark, commented.
Read the article online at: https://www.worldcoal.com/coal/08062018/mechel-prolongs-jfe-steel-coal-supply-deal/