Mechel Increases Exports of Elga Coal
According to the memorandum, Mechel will supply its Chinese partners from two to three million tonnes of steam coal (up to 250,000 tonnes monthly) mined at Mechel’s coal facilities — Elgaugol OOO, Yakutugol Holding Company AO and Southern Kuzbass Coal Company PAO. Supplies will be made starting in December 2016 and until December 2017. Prices will be adjusted on a monthly basis.
“This is the first long-term agreement for the next year that our company has signed since coal prices recouped globally. We are particularly pleased that it involves increase of coal supplies from Elga, a new flagship of Russia’s coal industry in the Far East. With this contract, Jidong Cement becomes the top foreign consumer of Elga’s products,” Mechel Mining Management OOO’s Chief Executive Officer Pavel Shtark noted.
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Mechel is an international mining and steel company which employs 66,000 people. 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.