Mechel signs memorandum with Jidong Cement

Russian mining and metals company Mechel ОАО signed a  coal supply memorandum with Chinese cement producer Jidong Cement.

According to the signed memorandum, Mechel is due to supply 1Mt of steam coal produced at Neryungrinsky and Elga open pits to Jidong Cement between April 2015 and March 2016. The price and exact volume of the supplies will be determined on a monthly basis.

The sides also agreed to consider expanding further their cooperation into supplies of metallurgical coals to Jidong Development facilities.

"The Chinese market remains a priority for Mechel's mining segment. It accounts for a major share – 70 per cent – 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," Pavel Shtar, CEO of Mechel Mining Management OOO commented.