China: Russia’s Mechel says it has prolonged a coal supply contract with Jidong Cement until the end of 2019. The mining and steel company will supply 2Mt/yr of thermal coal mined at the company’s Elga and Yakutugol mines in South Yakutia. Monthly supplies will vary from 100,000 to 150,000t 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. 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 1.9Mt and another 1.4Mt in 2018. In 2019 we plan to export thermal coal from Elga in comparable volumes,” said Mechel Mining Management’s chief executive officer (CEO) Pavel Shtark.
