MOSCOW, March 21, 2013 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL), one of the leading Russian mining and metals companies, announces that its subsidiary Mechel Carbon (Singapore) Pte. Ltd. has signed a memorandum for supplies of coking coal with Baosteel Resources Int. Co. Ltd., Baosteel Group Corporation's wholly-owned subsidiary focusing on raw materials supply.
According to the memorandum, which was signed on March 18 at Baosteel Resources' new Shanghai headquarters, Mechel Carbon is due to directly supply Baosteel with 960,000 tonnes of coking coal annually, with the one-year contract subject to prolongation. The price will be corrected monthly.
Up until March 1, 2013, Mechel Carbon has directly supplied a total of 252,000 tonnes of coking coal to Baosteel's major production mills in Shanghai, Guangdong, Jiangsu and Zhejiang.In order to streamline strategic cooperation efforts in specified order, the companies agreed to exchange regular visits, including those of senior executives every half a year, to discuss market trends and mutual interests, as well as ensure regular interaction by technical personnel. "Mechel's agreement with one of China's leading steel companies reflects the common approach of the two companies in regard to long-term cooperation. It marks another important step in consolidation and further expansion of our strategic ties. The two companies are set to increase the level and scope of their cooperation in terms of raw materials and other related areas, based on principles of joint coordination, close alliance and common development, which will benefit us all," Mechel Mining Management Company OOO's Chief Executive Officer Boris Nikishichev noted. Mechel is one of the leading Russian companies. Its business includes four segments: mining, steel, ferroalloy and power. Mechel unites producers of coal, iron ore concentrate, nickel, ferrochrome, ferrosilicon, steel, rolled products, hardware, heat and electric power. Mechel products are marketed domestically and internationally.