Singapore — July 28, 2014 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, reports signing a cooperation memorandum with South Korea’s GS Global corporation, which provides for supplies of up to 2.8 million tonnes of steam coal.
According to the memorandum, Mechel Group will annually supply GS Global’s facilities up to 2.8 million tonnes of coal products through its subsidiary Mechel Carbon Singapore. By the memorandum’s terms, the Group in particular will supply up to 1.5 million tonnes of steam coal from the Elga deposit to GS Global’s power stations, as well as up to 1 million tonnes of steam coal from the Elga deposit to Tongyang Cement & Energy, GS Global’s subsidiary and leader of South Korea’s construction industry.
“We highly value the potential of bilateral ties and consider our agreements with GS Global an important stage in developing the rich Elga deposit. This way we ensure a constant load of Elga Coal Complex’s industrial facilities and can affirm that investment in Elga begins to generate stable profit for the Group,” Mechel OAO’s Chief Executive Officer Oleg Korzhov said.
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Mechel OAO
Ekaterina Videman
Phone: +7 495 221-88-88
ekaterina.videman@mechel.com
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