OREANDA-NEWS. Metalloinvest and Kosaya Gora Iron Works have announced the signing of a 3-year pellet supply contract. The agreement states that the volume of shipped products will amount to 1.9 million tonnes.

As provided by the contract, prices will be fixed according to existing market benchmarks. The price calculation formula takes into account price dynamics in the global market.

Mikhailovsky GOK and Lebedinsky GOK (part of Metalloinvest) will deliver the iron ore products.

Andrey Varichev, CEO of Management Company METALLOINVEST LLC, commented: “Stable supplies to Russian companies is a priority area for Metalloinvest's operations. Long-term contracts allow our partners to plan well ahead their production and investment programmes, which ensures higher operational and financial efficiency.”

The signing of the new contract is part of Metalloinvest's policy of long-term agreements with companies buying iron ore. This ensures stable sales of high added-value products.