MECHEL TO SUPPLY CHINA’S BAOSTEEL RESOURCES WITH NEARLY ONE MILLION TONNES OF
COKING COAL
Shanghai, China – April 12, 2017 – Mechel PAO (MICEX: MTLR, NYSE: MTL), one of
the leading Russian mining and metals companies, reports that its cooperation
agreement with Baosteel Resources which is part of China Baowu Steel, China’s
largest steelmaking group, has been prolonged.
Since April 2017 and until March 2018, Mechel will supply Baosteel Resources’
facilities with up to 960,000 tonnes of premium-grade coking coal mined in
Southern Yakutia. Coal will be shipped via Mechel’s own Trade Port Posiet. The
price will be determined on a monthly basis.
“We have established trust-based, mutually beneficial ties with Baosteel
Resources. Last year, Mechel’s supplies to Baosteel Resources accounted for 15%
of our total coking coal sales to third parties. In the future, we will be glad
to offer our Chinese clients the high-quality coal products they have come to
appreciate over the years of our longstanding partnership. Due to large-scale
structural changes in China’s coal industry, demand for coking coal will remain
stable in that country throughout 2017. We see China’s coking coal imports grow,
which opens new export opportunities for Mechel as a major supplier of
metallurgical coal,” Mechel PAO’s Chief Executive Officer Oleg Korzhov
commented.
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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.