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Mechel expands long-term coal supply deal with Itochu

Mechel PAO expanded its long-term coal supply deal with Itochu Corp., agreeing to supply up to 800,000 tonnes of coking and thermal coal between December 2018 and March 2020.

The late 2017 agreement between the two companies covered 300,000 tonnes of washed steam coal from Southern Kuzbass Coal Co. Public Joint-Stock Co.'s New Olzherasskaya coal mine. Southern Kuzbass Coal is a Mechel subsidiary.

According to the Dec. 17 release, the amended deal also covers other Southern Kuzbass operations as well as the Elgaugol coal mine.

The end consumers of Mechel's products are expected to be major consumers in Japan and Asian steelmaking and power facilities, with pricing to be determined by mutual agreement.