Mechel Expands Long-Term Coal Supply Agreement with Japan’s Itochu Corporation
Mechel PAO reports expansion of the sales agreement with a major Japanese universal trading company Itochu Corporation.
The agreement stipulates that Mechel and Itochu Corporation agreed on potential sales of up to 800,000 tonnes of coking and thermal coal between December 2018 and March 2020. The coal will be shipped from Mechel’s Southern Kuzbass Coal Company and Elgaugol. The price will be determined by mutual agreement. Japan’s major consumers and Asian steelmaking and power facilities will be the end consumers of Mechel’s products.
“Our longstanding ties with Itochu Corporation are stepping up to a new level. Expanding our cooperation will help us consolidate our position in the Asia Pacific market. We are glad that Mechel’s coal won positive appraisal from our Japanese partners, and we will ensure its high quality in the future as well,” Mechel Mining Management Company OOO’s Chief Executive Officer Pavel Shtark commented.
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