MECHEL REPORTS SIGNING LONG-TERM COAL SUPPLY CONTRACT WITH CHINA’S JIDONG CEMENT
Zurich, Switzerland – December 20, 2017 – Mechel PAO (MOEX: MTLR; NYSE: MTL),
one of the leading Russian mining and metals companies, reports signing a
memorandum for coal supply with China’s Jidong Cement, one of the world’s top
cement producers.
According to the memorandum, Mechel will supply its Chinese partners up to three
million tonnes of steam coal mined at Elgaugol OOO’s Elga Open Pit and Yakutugol
Holding Company AO’s Neryungrinsky Open Pit. Prices will be adjusted on a
monthly basis following negotiations and on the basis of index rates.
“Jidong Cement is our longstanding and strategic partner in Asia, and we aim to
continue our long-term and mutually profitable partnership. Mechel’s mining
division has met all its obligations on our prior agreement. Today, Jidong
Cement is the chief foreign consumer of Elga’s steam coal,” Mechel PAO’s Chief
Executive Officer Oleg Korzhov said.
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Mechel PAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com
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Mechel is an international mining and steel company. Its products are marketed
in Europe, Asia, North and South America, Africa. Mechel unites producers of
coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and
electric power. All of its enterprises work in a single production chain, from
raw materials to high value-added products.
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Some of the information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Mechel, as defined in the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. We wish to caution you that
these statements are only predictions and that actual events or results may
differ materially. We do not intend to update these statements. We refer you to
the documents Mechel files from time to time with the U.S. Securities and
Exchange Commission, including our Form 20-F. These documents contain and
identify important factors, including those contained in the section captioned
“Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our
Form 20-F, that could cause the actual results to differ materially from those
contained in our projections or forward-looking statements, including, among
others, the achievement of anticipated levels of profitability, growth, cost and
synergy of our recent acquisitions, the impact of competitive pricing, the
ability to obtain necessary regulatory approvals and licenses, the impact of
developments in the Russian economic, political and legal environment,
volatility in stock markets or in the price of our shares or ADRs, financial
risk management and the impact of general business and global economic
conditions.