OREANDA-NEWS. September 12, 2011. As part of the deal, the two companies have agreed on pricing for the raw material based on current market indicators and price dynamics on the global iron ore market. Metalloinvest’s Mikhailovsky Mining and Processing Plant will be supplying iron ore to Magnitogorsk Iron & Steel Works (MMK) for as long as three years. “This contract underscores our strategy to be a preferred provider of iron ore to Russia’s leading metallurgical companies," said Eduard Potapov, General Director of Metalloinvest Managing Company. “Significantly, this is a long-term agreement. Such agreements are critical to our long-term planning, including with respect to production, sales and investment." Boris Dubrovsky, MMK CEO said: “This contract is quite important to MMK and will ensure MMK’s raw materials security. The products MMK will buy from Metalloinvest ideally fit our blast furnace technology and hence will eventually improve MMK’s financial performance.”

METALLOINVEST is a recognized leader in the mining and metallurgical industry of Russia. It is one of the largest iron ore and HBI producers and suppliers in Europe and CIS. In 2010 the share of the Group was 36% of the production of iron ore concentrate in Russia, 59% of the production of pellets and 100% of production of HBI and iron-rich pellets. In addition, the company produces approximately 9% of the total volume of production of steel and steel products in Russia.