According to the agreement, Mechel Carbon will supply Baosteel with 960,000 metric tons (mt) of coking coal annually over a one-year contract with possibility to renew; the monthly price will be corrected. Until the beginning of this month, Mechel Carbon directly supplied 252,000 mt of coking coal to Baosteel’s primary production mills in Shanghai, Zhejiang, Guangdong and Jiangsu.

Mechel Mining Management CEO Boris Nikishichev sounded a positive note. “Mechel’s agreement with one of China’s leading steel companies reflects common approach in long-term cooperation, based on principles of joint coordination, close alliance and common development, which will benefit us all,” he said.