Russian mining and steel group Mechel has announced an extension of its cooperation agreement with major Chinese corporation Baosteel Resources. Accordingly, from April this year to March 2017, Mechel will supply Baosteel Resources with up to 960,000 mt of premium-grade coking coal produced at its Neryungrinsky open pit. Most of this coal will be shipped via Mechel’s own coal export terminal Trade Port Posiet. The price will be determined on a monthly basis.
According to Mechel, Baosteel Resources accounts on average for 30 percent of its coal exports to China.