31 Mar 2016 19:08

Mechel to deliver 960,000 tonnes of coking coal to China's Baosteel by March 2017

MOSCOW. March 31 (Interfax) - Mechel and Chinese Baosteel Resources have extended their cooperation agreement, Mechel said in a press release.

Under the latest agreement, Mechel will deliver up to 960,000 tonnes of premium-grade coking coal produced at the Neryungrinsky Open Pit from April 2016 through March 2017. Most of this coal will be shipped via the port of Posiet, which is owned by Mechel. "The price will be determined on a monthly basis," Mechel said.

"Baosteel Resources accounts on average for 30% of our coal exports to China, that has always been a priority market for us," Mechel CEO Oleg Korzhov is quoted in the press release as saying.