Mechel, one of the leading Russian mining and steel groups, has announced that its international sales subsidiary Mechel Trading AG has signed a long-term coking coal supply contract with South Korean steel producer Hyundai Steel.
As SteelOrbis previously reported, in February 2009 Mechel and Hyundai Steel concluded an agreement for the supply of K-9 grade coking coal mined from the Neryungri open pit. Within the frame of this agreement, on June 9, 2009 Mechel Trading AG and Hyundai Steel signed a commercial contract, under the terms of which about 200,000 mt per year of coking coal will be supplied to the South Korean steelmaker during the next five years, starting from April 1, 2010.
The coal deliveries to South Korea will be performed on FOB basis via Mechel's trading port Posiet. The price agreed for coking coal supplies has not been disclosed.
Commenting on the contract, Mechel senior vice president Vladimir Polin stated, "Signing the commercial contract is another stage in developing partnership relations between Mechel and Hyundai Steel. In the context of the current economic situation, export coking coal supplies have became especially important to ensure utilization of our mining facilities."