The deal was inked in South Korea with Mechel chief executive Igor Zyuzin participating in a visit as part of a Russian government delegation headed by the nation’s Vice-Premier Igor Sechin.
The coking coal will be sourced from Mechel’s Neryungri open pit mine in Yakutia, East Siberia and the export deliveries will be undertaken by subsidiary company Yakutugol.
“South Korean-based companies, including Hyundai Steel, are traditionally consumers of Yakutian coking coals,” Mechel senior vice president Vladimir Polin said.
“The long-term agreement for the delivery of K-9 grade coking coals will enable Mechel to ensure more sustainable utilisation of Yakutugol’s production capacity and to ensure sales as part of the output from the Elga deposit in the long-term.”
Mechel said the deliveries will start on April 1, 2010, while the company did not reveal any details on the contracted prices in its announcement.
