MOSCOW, April 15 (RIA Novosti) – Russian steel and coking coal producer Mechel and China’s metals firm Baosteel Resources Int. Co. Ltd. have signed a memorandum to implement joint mining resources projects, Mechel said on Monday.
Under the terms of the agreement, Mechel will supply Baosteel Resources with up to 960,000 tons of coking coal annually through its subsidiary Mechel Carbon Singapore. The price will be corrected monthly.
The memorandum also allows for the implementation of joint projects in mining resources in Russia, China and other countries. In addition, the sides will consider the possibility of cooperation in other fields, including collaboration between economic development institutes in Russia and China.
“Baosteel Resources is an important partner for Mechel. We managed to achieve mutually profitable ties on coking coal supplies, based on the principles of mutual trust and benefit,” Mechel’s Chief Executive Officer Yevgeny Mikhel said.
“Considering the current situation in the coal market with its high price volatility, we need guarantees of long-term and stable supplies. The contract with Baosteel Resources gives us precisely that opportunity,” he said.
