Mechel PAO, one of the leading Russian mining and metals companies, has signed a memorandum for coal supply with China’s Jidong Cement, one of the world’s top cement producers.
According to the memorandum, Mechel will supply its Chinese partners up to 3 million t of steam coal mined at Elgaugol OOO’s Elga Open Pit and Yakutugol Holding Company AO’s Neryungrinsky Open Pit. Prices will be adjusted on a monthly basis following negotiations and on the basis of index rates.
Mechel PAO’s CEO, Oleg Korzhov, said: “Jidong Cement is our longstanding and strategic partner in Asia, and we aim to continue our long-term and mutually profitable partnership. Mechel’s mining division has met all its obligations on our prior agreement. Today, Jidong Cement is the chief foreign consumer of Elga’s steam coal.”