Mechel inks deals with Posco, STX at APEC summit
MOSCOW. Sept 10 (Interfax) - The group Mechel , during the Asian-Pacific Economic Cooperation (APEC) business summit, signed a number of agreements with the South Korean companies Posco and STX - one of the biggest corporations in the fields of shipbuilding, construction, marine transportation, and energy, a company statement says.
During a meeting with Posco, with which a cooperation agreement was signed last year, the parties considered possibilities for further developing strategic partnership and issues involved in Mechel providing more coal product to Posco enterprises.
Also discussed was the building of a permanent mining town at the Elga coal complex, the general subcontractor for which is the Posco construction division Posco A&C.
Mechel inked an agreement with STX on long-term cooperation in promoting product produced by both companies' outfits, and the implementation of possible joint projects. In particular, cooperation is envisaged in coal-product delivery, joint involvement in port and port terminal development projects in Russia's Far East, and working together in matters of marine transport.
Also at the summit, Mechel signed a 15-year contract with OJSC RAO Energy Systems of East on cooperation in delivering Elga coal product - possibly as much as 50 million tonnes.
OJSC Yakutgol, part of OJSC Mechel-Mining and one of the biggest coal producers in Yakutia, is developing the Elga coal deposit. Capital expenditures in its development in 2011-2012 will run to $1.6 billion, in 2013-2015 to $1.56 billion, and in 2016-2018 to $562 million.
Production at the Elga pit began in August of last year, and by the end of the year amounted to around 200,000 tonnes of oxidized steam coal. Mechel-Mining plans by 2015 to ship from Elga 2.4 million tonnes of coking coal concentrate and 4.3 million tonnes of steam coal and industrial product. Plans for this year include the production of 500,000 tonnes of coking coal concentrate.