Moscow, Russia — April 30, 2013 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces that its mining division's trading subsidiary Mechel Carbon (Singapore) Pte. Ltd. has signed a three-year contract with South Korea's POSCO corporation for supply of coking coal.
The agreement, signed on April 30, 2013, stipulates that Mechel Carbon (Singapore) will supply POSCO with 500,000 tonnes of coking coal per year.
Besides that, Mechel Carbon also signed with POSCO a one-year contract for supply of 200,000 tonnes of PCI coal in 2013.
The price during these contracts shall be determined by mutual agreement on a quarterly basis.
“This agreement is yet another proof of Mechel’s longstanding and stable complex partnership with POSCO, one of the world’s leading steelmaking companies. This contract with POSCO is one more step in implementing Mechel’s strategy of developing ties with the world’s largest steel producers and diversifying our markets. Considering high market volatility, a long-term agreement with POSCO and several other major consumers will enable Mechel to provide its coal mining enterprises with stable orders, which will help consolidate the company’s position as one of the world’s largest producers of metallurgical coal,” Mechel Mining Management Company OOO’s Chief Executive Officer Boris Nikishichev noted.