Russia’s Mechel may increase coking coal sales to China 17%

MOSCOW, Jan 14 (PRIME) -- Russian metals and mining group Mechel will increase its sales of coking coal 16.7% to 1.4 million tonnes a year to China’s Baosteel Resources under a new memorandum, Mechel said in a statement on Wednesday.

The price of supplies will be set monthly.

The memorandum also foresees Mechel’s supplies of some other products to Baosteel, including pulverized coal and power station coal.

“Long-term export contracts are particularly important for us in the period of the exchange rate volatility, as they secure Mechel’s stable foreign exchange proceeds. At the moment we export over 70% of ore mining division’s products,” Oleg Korzhkov, Mechel’s CEO, said.

The company fulfills its liabilities under a contract to supply 1.2 million tonnes of coking coal per year to Baosteel that accounts for around 10% of Mechel’s total coal exports, he said.

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