MMK, SBU sign 5-yr coal deal
MOSCOW. Dec 3 (Interfax) - Magnitogorsk Iron & Steel Works (MMK) has signed a five-year agreement with Siberian Business Union (SBU) for coking and steam coal deliveries, SBU said in a statement.
SBU will ship at least 3.3 million tonnes of coal concentrate to MMK per year, meeting the steel major's entire needs for Grade K concentrate. It will also ship 100,000 tonnes of coal for MMK's heat and power plant.
MMK said it would receive up to 3.5 million tonnes of high-quality coal concentrate per year between 2010 and 2014. "The agreements will cover the MMK coke and chemicals division's entire needs for coal concentrate," it said.
SBU controls 26 coal mining enterprises, among them Prokopiyevskugol, in the Kuznetsk basin (Kuzbass), Kemerovo region. The holding's SBU-Coal division expects to produce 13.8 million tonnes of steam coal in 2009. Prokopiyevskugol mines coking coal. SBU exports around 80% of its coal.