MOSCOW, April 30, 2013 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL), one of the leading Russian mining and metals companies, announces that its mining division's trading subsidiary Mechel Carbon (Singapore) Pte. Ltd. has signed a three-year contract with South Korea's POSCO corporation for supply of coking coal.
The agreement, signed on April 30, 2013, stipulates that Mechel Carbon will supply POSCO with 500,000 tonnes of coking coal per year.
Besides that, Mechel Carbon also signed with POSCO a one-year contract for supply of 200,000 tonnes of PCI coal in 2013.
The price during these contracts shall be determined by mutual agreement on a quarterly basis.
"This agreement is yet another proof of Mechel's longstanding and stable complex partnership with POSCO, one of the world's leading steelmaking companies. This contract with POSCO is one more step in implementing Mechel's strategy of developing ties with the world's largest steel producers and diversifying our markets. Considering high market volatility, a long-term agreement with POSCO and several other major consumers will enable Mechel to provide its coal mining enterprises with stable orders, which will help consolidate the company's position as one of the world's largest producers of metallurgical coal," Mechel Mining Management Company OOO's Chief Executive Officer Boris Nikishichev noted.
Mechel is one of the leading Russian companies. Its business includes four segments: mining, steel, ferroalloy and power. Mechel unites producers of coal, iron ore concentrate, nickel, ferrochrome, ferrosilicon, steel, rolled products, hardware, heat and electric power. Mechel products are marketed domestically and internationally.
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.
CONTACT: Mechel OAO Anton Lapin Tel: + 7 495 221 88 88 email@example.com