Chinese cement producer Jidong Cement has awarded a 3Mt coal supply contract to Russian mining company Mechel.
"Over the year Mechel will supply up to 3Mt of steam coal mined at LLC Elgaugol's Elga Open Pit Mine and JSC Yakutugol's Neryungrinsky Open Pit Mine,” said the Russian mining company in a statement. The Elga coal complex is one of the world’s largest untapped deposits with coal reserves of around 2.2bnt in Yakutia. The Neryungrinsky mine is one of three in the company’s 197.5Mt Yakutugol complex in Yakutia.
Prices will be adjusted on a monthly basis following negotiations and on the basis of index rates.
Mechel CEO, Oleg Korzhov, was cited as saying that Jidong Cement is the company's biggest foreign customer for Elga steam coal. "Jidong Cement is our longstanding and strategic partner in Asia, and we aim to continue our long-term and mutually profitable partnership," he said.
