Mechel Signs MOU To Boost Coal Supplies To China's Baosteel To 1.44 Mln Tonnes

(RTTNews) - Russian mining and steel company Mechel OAO (MTL) announces that it has signed a MOU with China's steelmaking major Baosteel Resources corp. to boost supplies to 1.44 million tonnes of coking coal a year.

An earlier contract provided for supplies of 1.2 million tonnes of coking coal a year. Since April 2014 through December 2014, over 1 million tonnes of coking coal was shipped to Baosteel.

The new agreement, valid from April 2015 through March 2016, calls for Mechel to supply Baosteel with up to 1.44 million tonnes of coking coal.

The new agreement comes with a possibility of further prolongation. Prices will be determined on a monthly basis.

The MOU also provides for a possibility of supplying Baosteel with other Mechel products, such as PCI and steam coal, as well as cooperation in other areas, including the possibility of collaboration with the economic development institutes in Russia and China.