BEIJING, April 15, 2013 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL) , one of the leading Russian mining and metals companies, announces signing a memorandum of understanding with Baosteel Resources Int. Co. Ltd. During the official visit of Russia's First Deputy Prime Minister Igor Shuvalov to Beijing, Mechel Group and Baosteel Resources Int. Co. Ltd signed a memorandum of understanding. Mechel's Vice-President for Commercial Activities Mikhail Urvantsev, who was part of Russia's official delegation, signed the document on behalf of Mechel. The memorandum stipulates that Mechel OAO, through its subsidiary Mechel Carbon Singapore will supply Baosteel Resources with up to 960,000 tonnes of coking coal annually. The price will be corrected monthly. In addition, the memorandum allows for implementation of joint projects in mining resources on the territory of the Russian Federation, People's Republic of China and third countries. The sides will consider the possibility of cooperation on other fields as well, including the possibility of collaboration with the economic development institutes of the Russian Federation and the People's Republic of 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. 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," Mechel OAO's Chief Executive Officer Evgeny Mikhel 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. Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our Form 20-F. These documents contain and identify important factors, including those contained in the section captioned "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.
CONTACT: Mechel OAO Anton Lapin Tel: + 7 495 221 88 88 email@example.com