Mechel has announced that it has signed a memorandum with China's Jidong Cement.
The memorandum outlines how Mechel will supply 1 million t of steam coal produced at the Neryungrinsky and Elga open pits to Jidong Cement between April 2015 and March 2016.
The two companies also agreed to consider expanding their supply cooperation into metallurgical coals to Jidong Development facilities.
"The Chinese market remains a priority for Mechel's mining segment. It accounts for a major share - 70% - of our total sales to the entire Asia Pacific. With a global slump in demand for coal, it is particularly important for us to develop long-term ties that enable us to retain our share in the market and ensure the stability of our coal exports," Mechel Mining Management OOO's Chief Executive Officer Pavel Shtark commented.
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