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Mechel prolongs coal supply contract with China’s Jidong Cement

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Mechel PAO, one of Russia’s leading mining and metals companies, has reported that it is prolonging its contract with Jidong Cement. The contract, for coal supply to the cement company, will be prolonged until the end of 2019.

According to the agreement, Mechel will supply its Chinese partners with 2 million tpy of thermal coal, mined at the company’s South Yakutia facilities, Elgaugol OOO, and Yakutugol Holding Co. AO.

Supplies will vary from 100 000 tpm to 150 000 tpm of coal products. Prices will be adjusted on a monthly basis, following negotiations and on the basis of index rates.

“This is a third major contract signed by Mechel and Jidong Cement,” said Pavel Shtark, CEO of Mechel. “I am sure that our ties will continue to develop in a constructive manner in the future. It is also important to note that Jidong Cement is a key customer of Elga’s thermal coal in Asia – in 2017 we supplied our Chinese partners with 1.9 million t and another 1.4 million in 2018. In 2019, we plan to export thermal coal from Elga in comparable volumes.”

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European cement news Cement news 2018