Mechel, JFE Steel Prolong Coal Supply Contract Till 2021
TOKYO, June 07, 2018 (GLOBE NEWSWIRE) -- Mechel PAO (MOEX:MTLR) (NYSE:MTL), one of the leading Russian mining and metals companies, reports prolonging its long-term deal for coal supplies with Japan’s JFE Steel corporation, a major steel mill in Asia Pacific, by another three years.
The agreement will be in force until June 2021.
According to the agreement, Mechel will annually supply JFE Steel up to 1.5 million tonnes of metallurgical coals — coking coal concentrate produced by Yakutugol Holding Company AO as well PCI produced by Southern Kuzbass Coal Company PAO. The price will be determined based on the market situation. JFE Steel also voiced its willingness to acquire additional volumes of coking coal concentrate produced by Elgaugol OOO, which volumes and supply conditions are to be discussed further.
JFE Steel has been buying Southern Yakutia’s coals for over 30 years and has always been Mechel’s longstanding and reliable partner.
“In 2015, we signed our first three-year contract with JFE Steel whom we have been supplying with up to 1 million tonnes of coal annually. Prolongation of this contract brings our ties to a whole new level. We are glad that the Japanese side highly appreciates both our products’ quality and the future of our partnership. With this contract, Mechel’s mining facilities will be able to step up our supplies to Japan, with this country’s share in our overall exports to go up to 15%,” Mechel Mining Management Company OOO’s Chief Executive Officer Pavel Shtark commented.
Mechel PAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com
Mechel is an international mining and steel company. Its products are marketed in Europe, Asia, North and South America, Africa. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and electric power. All of its enterprises work in a single production chain, from raw materials to high value-added products.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our Form 20-F. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.
