Mechel reports signing long term coal supply contract with China’s Jidong Cement

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Mechel PAO, one of the leading Russian mining and metals companies, reports signing 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 three million tonnes 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.

“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,

Beijing has vowed to crack down on pollution as part of its efforts to clear its skies, ordering cutbacks in industrial production including cement, steel and aluminum in the winter season.

Mechel is an international mining and steel company. 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.

Source: GLOBE NEWSWIRE