Japan’s JFE Steel extends met coal supply deal with Mechel by 3 years
11 june 2018
Japan’s JFE Steel has extended a metallurgical coal supply agreement with Russian mining and steel company Mechel by another three years, the latter said late Thursday.
The agreement, which ends June 2021, will see Mechel supplying 1.5 million mt/year of met coal to JFE Steel.
The coal will consist of coking coal concentrate produced by Yakutugol Holding and pulverized coal injection or PCI produced by Southern Kuzbass Coal, Mechel said.
JFE Steel was considering to buy additional volumes of coking coal concentrate produced by Elgaugol, it said.
Mechel signed its first three-year supply contract with JFE Steel in 2015 for 1 million mt/year of coal.
“With this contract, Mechel’s mining facilities will be able to step up our supplies to Japan, with this country’s share in our overall exports to go up to 15%,” Mechel’s CEO Pavel Shtark said.
Mechel is a leading Russian coking coal producer, which produced 20.6 million mt of coal in 2017.