Mechel and SG Global Sign Agreement for Annual Supply of 2.8 Million Tonnes of Coal

According to the memorandum, Mechel Group will annually supply SG Global’s facilities up to 2.8 million tonnes of coal products through its subsidiary Mechel Carbon Singapore. By the memorandum’s terms, the Group in particular will supply up to 1.5 million tonnes of steam coal from the Elga deposit to SG Global’s power stations, as well as up to 1 million tonnes of steam coal from the Elga deposit to Tongyang Cement & Energy, SG Global’s subsidiary and leader of South Korea’s construction industry.

“We highly value the potential of bilateral ties and consider our agreements with SG Global an important stage in developing the rich Elga deposit. This way we ensure a constant load of Elga Coal Complex’s industrial facilities and can affirm that investment in Elga begins to generate stable profit for the Group,” Mechel OAO’s Chief Executive Officer Oleg Korzhov said.