Mechel PAO, one of the leading Russian mining and metals companies, reports prolonging the contract for coal supply with China’s Jidong Cement, one of the world’s top cement producers, until the end of 2019.
According to the agreement, during this year Mechel will supply its Chinese partners up to 2 million t of thermal coal mined at the company’s South Yakutia facilities, Elgaugol OOO and Yakutugol Holding Company AO. Monthly supplies will vary from 100 000 - 150 000 t of coal products. Prices will be adjusted on a monthly basis following negotiations and on the basis of index rates.
“This is a third major contract signed by Mechel and Jidong Cement. I am sure that our ties will continue to develop in a constructive manner in the future. It is also important to note that Jidong Cement is a key customer of Elga’s thermal coal in Asia — in 2017 we supplied our Chinese partners with 1.9 million t and another 1.4 million in 2018. In 2019, we plan to export thermal coal from Elga in comparable volumes,” Mechel Mining Management OOO’s CEO Pavel Shtark commented.