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Mechel to supply 1.2 million tonnes of coking coal to BaoSteel

Mechel announced that its contract with BaoSteel Resources corporation, which provides for an increase of coal supplies to 1.2 million tonnes of coking coal a year, has been prolonged.

According to the memorandum signed at BaoSteel Resources' Shanghai headquarters, Mechel Carbon Singapore will supply Baosteel Resources with up to 1.2 million tonnes of coking coal.

The agreement will be valid from April 2014 through March 2015, with a possibility of further prolongation.

Prices will be determined on a monthly basis.

Mechel Carbon Singapore has fully met its obligations according to the earlier contract, having shipped a total of 960,000 tonnes of coking coal to Baosteel enterprises in China's eastern and southern provinces. As part of last year's agreement, Mechel Carbon Singapore also made test shipments of PCI coals, as well as steam coal from the Elga deposit.

After the new agreement, Baosteel Resources will account for up to 10% of Mechel's coal exports to Asia Pacific.

Source: Strategic Research Institute, Steel Guru