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15:36 | Jul 31 | 2014

Mechel to supply Elga coal to South Korea

 Mechel, a leading Russian mining and metallurgical company, have reported signing a memorandum on cooperation with the South Korean GS Global, assuming supply of power-generating coal in the amount up to 2.8 million tons.

Under the Memorandum, Mechel Group, via its daughter company Mechel Carbon Singapore, is going to supply GS Global divisions with up to 2.8 million tons of coal. In particular, the Memorandum stipulates that the Group is to ship up to 1.5 million tons of power-generating coal from Elga field to GS Global power station, as well as up to 1 million tons of power-generating coal from Elga to Tongyang Cement & Energy, a daughter company of GS Global and a leader of South Korean construction industry. 

“We think the bilateral cooperation potential high and assume our agreements with GS Global a significant stage in developing rich Elga field. This will help us to ensure the use of the Elga field facilities to their full capacity. Now we can say that the investments into Elga are starting to bring the stable income to the Group,” – said Oleg Korzhov, Director General of Mechel.