Mechel OAO, one of the leading Russian mining and metals companies, recently signed a supply agreement with South Korea's GS Global Corp., for as much as 2.8 million metric tons (mt) of steam coal. Up to 1.5 million mt of coal will be shipped to GS Global's power stations, as well as up to 1 million mt to Tongyang Cement & Energy, a GS Global subsidiary, from the Elga mine.
"We value highly the potential of bilateral ties and consider our agreements with GS Global an important stage in developing the rich Elga deposit. This way we ensure a level of demand for the Elga Coal Complex," said Oleg Korzhov, CEO, Mechel. Mechel will supply the coal through its subsidiary Mechel Carbon Singapore.