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Mechel and Kardemir agree to extend coke supply agreement

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Global Mining Review,

Mechel PAO, a Russian mining and metals company, has prolonged its agreement on coke supplies to the Turkish steel producer Kardemir.

According to the agreement, from January to December 2019 Mechel will supply Kardemir with 200 000 t of metallurgical coke produced at Moscow Coke and Gas Plant. Compared to the previous deal, the amount of supplies to Kardemir will go up by nearly 70%. Coke will be shipped via Port Mechel Temryuk in Russia’s Krasnodar Region.

The price will be determined on a quarterly basis following negotiations.

“Over 9 months of 2018, we increased coke exports by 16%. We managed to achieve this result partly due to our partnership with Kardemir. With this new agreement, our ties will continue to develop just as efficiently,” Mechel Mining Management OOO’s CEO, Pavel Shtark, said.

Turkish companies consume about 6 million tpy of coke, with Turkey’s coke producers accounting for approximately 5 million t and the remainder imported from abroad.

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Russian mining news