Mechel, a leading Russian mining and metals company, reported on November 2, 2017, signing a framework agreement with a major Japanese universal trading company Itochu Corporation.
The agreement stipulates that Mechel is due to supply Itochu Corporation with up to 300,000 tonnes of washed steam coal produced at Southern Kuzbass Coal Company’s New-Olzherasskaya Mine.
The price will be determined by mutual agreement without reference to any particular formula. Japan’s major cement and power facilities will be the end consumers of Mechel’s products.
«Our company highly appreciates the level of cooperation with our Japanese partners. Over the past 2 years, we shipped coal to Itochu Corporation on spot contracts, and signing a long-term agreement is a logical next step in our partnership. Today Japan’s market accounts for about 20% of Mechel’s coal exports, and we expect to increase this figure in the near future,» Mechel Mining Management Company’s CEO Pavel Shtark commented.
