According to the agreement, during this year Mechel will supply its Chinese partners up to 2 million t of thermal coal mined at the company’s South Yakutia facilities, Elgaugol OOO and Yakutugol Holding Company AO. Monthly supplies will vary from 100 000 - 150 000 t of coal products. Prices will be adjusted on a monthly basis following negotiations and on the basis of index rates.
“This is a third major contract signed by Mechel and Jidong Cement. I am sure that our ties will continue to develop in a constructive manner in the future. It is also important to note that Jidong Cement is a key customer of Elga’s thermal coal in Asia — in 2017 we supplied our Chinese partners with 1.9 million t and another 1.4 million in 2018. In 2019, we plan to export thermal coal from Elga in comparable volumes,” Mechel Mining Management OOO’s CEO Pavel Shtark commented.
