OREANDA-NEWS. April 17, 2013. Mechel (NYSE: MTL), one of the leading Russian mining and metals companies, announces signing a memorandum of understanding with Baosteel Resources Int. Co. Ltd.

During the official visit of Russia’s First Deputy Prime Minister Igor Shuvalov to Beijing, Mechel Group and Baosteel Resources Int. Co. Ltd signed a memorandum of understanding. Mechel’s Vice-President for Commercial Activities Mikhail Urvantsev, who was part of Russia’s official delegation, signed the document on behalf of Mechel.

The memorandum stipulates that Mechel, through its subsidiary Mechel Carbon Singapore will supply Baosteel Resources with up to 960,000 tonnes of coking coal annually. The price will be corrected monthly.

In addition, the memorandum allows for implementation of joint projects in mining resources on the territory of the Russian Federation, People’s Republic of China and third countries. The sides will consider the possibility of cooperation on other fields as well, including the possibility of collaboration with the economic development institutes of the Russian Federation and the People’s Republic of China.

“Baosteel Resources is an important partner for Mechel. We managed to achieve mutually profitable ties on coking coal supplies, based on the principles of mutual trust and benefit. Considering the current situation in the coal market with its high price volatility, we need guarantees of long-term and stable supplies. The contract with Baosteel Resources gives us precisely that opportunity,” Mechel Chief Executive Officer Evgeny Mikhel noted.