Mechel ОАО, one of the leading Russian mining and metals companies, announces signing a memorandum with China's Jidong Cement, one of the world's top ten cement producers.
According to the signed memorandum, Mechel is due to supply 1 million tonnes of steam coal produced at Neryungrinsky and Elga open pits to Jidong Cement between April 2015 and March 2016. The price and exact volume of the supplies will be determined on a monthly basis.
The sides also agreed to consider expanding further their cooperation into supplies of metallurgical coals to Jidong Development facilities.
"The Chinese market remains a priority for Mechel's mining segment. It accounts for a major share - 70% - of our total sales to the entire Asia Pacific. With a global slump in demand for coal, it is particularly important for us to develop long-term ties that enable us to retain our share in the market and ensure the stability of our coal exports," Mechel Mining Management OOO's Chief Executive Officer Pavel Shtark commented.
Mechel is an international mining and steel company which employs over 67,000 people. Its products are marketed in Europe, Asia, North and South America, Africa. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and electric power. All of its enterprises work in a single production chain, from raw materials to high value-added products.