Metalloinvest and NLMK announce contract extension

Metalloinvest and Novolipetsk Steel (NLMK) today announced the extension of their existing long-term pellet supply contract until 31 December 2015. According to the agreed terms, Metalloinvest will supply NLMK with a total of 6.6 million tonnes of pellets next year.

The pricing under the contract will take into account current market prices, as well as global market price trends. Lebedinsky GOK and Mikhailovsky GOK will supply the pellets to NLMK's main production site in Lipetsk.

Andrey Varichev, CEO of Metalloinvest, commented: “The extension of our current contract serves as a continuation of the long-term mutually-beneficial partnership between Metalloinvest and NLMK. The commissioning of Pellet Plant #3 at Mikhailovsky GOK with an annual production capacity of 5 million pellets will allow the Company to reliably fulfil its supply orders to Russian companies. Delivering high quality iron ore products is an absolute priority for Metalloinvest.”

Earlier, in 2011, Metalloinvest and NLMK signed a long-term contract for the supply of 21.6 million tonnes of pellets over a four-year period.