Russian Mining and Metallurgical Company and Jidong Cement signed a memorandum of understanding on the supply of one million tons of steam coal

   Mechel, a Russian mining and metallurgical company, announced that it had signed a memorandum of understanding with China's Tangshan Jidong Cement Co., Ltd. for the supply of 1 million tons of thermal coal.

   According to the memorandum, Mechel shall supply Jidong Cement with thermal coal from Neliuengri and Eliji coal mines from April 2015 to March 2016, and the price and specific supply shall be agreed on a monthly basis.

   The two sides also reached a consensus on the possibility of expanding the supply of thermal coal to Jidong Development Group in the future.

   Pavel Stelka, managing director of Mechel Mining Management (Mechel Mining Management Company), believes that China remains a priority market for Mechel's mining direction, accounting for 70% of the company's exports to the entire Asia-Pacific region.

   "With global coal demand declining, we must develop long-term cooperation to retain market share and ensure stable coal exports," the announcement quoted Steilka as saying. "

   According to Mechel spokesman Ryzhkov, if in 2011, the share of Asia-Pacific countries accounted for 50% of Russia's "Mechel" group's coal exports, in 2014, the figure was 73%. The Chinese market is one of the top priorities of the "Mechel" Group in the Asia-Pacific region. In 2014, Mechel Group exported 6.7 million tons of coal to China, an increase of 7% over 2013. In 2014, the group has become the largest exporter of coking coal concentrates in Russia. The Group's metallurgical coal exports to China account for 7% of China's total metallurgical coal imports. The company has established close ties with many industrial enterprises in China, including Jidong Development Group, Baosteel, Shagang, China National Building Material Group, etc.

   The "Mechel" Group, one of the world's leading companies in the mining and metallurgy industry, was founded in 2003. The group consists of more than 20 enterprises, including coal, iron ore, steel, rolled products, ferroalloys, thermal energy and power producers. In 2014, the net loss of the "Mechel" group improved by 48% to $4.3 billion under US GAAP. When adjusted, the net loss was $144 million.