MMK and ENRC have announced signing a ten-year iron ore supply

Magnitogorsk Iron & Steel Works (MMK) and ENRC Marketing & Sales, the sales and marketing arm of Eurasian Natural Resources Corporation (ENRC) have announced signing a ten-year iron ore supply.

ENRC Marketing & Sales will supply iron ore from SSGPO (Sokolov-Sarbai Mining Production Association), a unit of ENRC.

Under the terms of this new agreement, ENRC Marketing & Sales will supply iron ore concentrate, fluxed pellets and other iron ore materials to MMK for next ten years in the volumes agreed by the parties.

Pricing is based on international prices and allows price indexation for every contractual year.

Victor F. Rashnikov, Chairman of the Board of Directors of MMK, commented:"We are pleased to have reached this agreement with ENRC, cementing our important partnership for the foreseeable future. It brings our cooperation to a new level. In ensuring the long term, stable provision of key raw materials to MMK, it will help to guarantee our competitiveness well into the future.”

ENRC Chief Executive Dr Johannes Sittard added:

"The conclusion and signing of this long term supply agreement reflect the long standing ties between our two companies. The confidence and trust in our business partner MMK since the formation of SSGPO allows us to commit and guarantee a large portion of our production. This agreement gives SSGPO the basis to continue to invest in the upgrading and enlarging of its operations.”