MOSCOW, March 31, 2016 (GLOBE NEWSWIRE) -- Mechel PAO (NYSE:MTL), (MOEX:MTLR), a leading Russian mining and metals company, announces that its cooperation agreement with China’s major corporation Baosteel Resources has been prolonged.
Since April 2016 and until March 2017, Mechel will supply the Chinese company with up to 960,000 tonnes of premium-grade coking coal produced at Neryungrinsky Open Pit. Most of this coal will be shipped via Mechel’s own Trade Port Posiet. The price will be determined on a monthly basis.
“We have established constructive ties with Baosteel Resources. In the future, Mechel intends to adhere to the best of practices in dealing with this company. We supply our partners with high-quality coking coal which has long become a trademark of Yakutia and all of Russia’s Far East. Baosteel Resources accounts on average for 30% of our coal exports to China, that has always been a priority market for us,” Mechel’s Chief Executive Officer Oleg Korzhov commented.
Mechel is an international mining and steel company which employs over 67,000 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.