PJSC Mechel : Mechel to Supply Coal to Neryungrinskaya Power Station

Rhea-AI Summary

Mechel PAO (NYSE:MTL) has signed a contract to supply approximately 360,000 tonnes of thermal coal to Neryungrinskaya Power Station from October 2021 to March 2022. This contract ensures uninterrupted power generation during the heating season. Mechel's CEO, Oleg Korzhov, emphasized the long-standing partnership with Far-Eastern Energy Company, noting that 10-12% of their thermal coal sales are directed to this company. The upcoming supply mirrors the quantity provided in the previous winter season, showcasing Mechel's commitment to quality and reliability.

Positive

• Secured a contract for 360,000 tonnes of coal supply, ensuring stable revenue.
• Continued partnership with Far-Eastern Energy Company strengthens business ties.
• Reflects consistent demand for Mechel's coal products in the region.

Negative

• None.

NERYUNGRI, RUSSIA / ACCESSWIRE / September 22, 2021 / Mechel PAO (MOEX:MTLR, NYSE:MTL), one of the leading Russian mining and metals companies, reports signing a contract for coal supply with Far-Eastern Energy Company (part of RusHydro Group).

The contract stipulates supplies of thermal coal to Neryungrinskaya Power Station for uninterrupted generation during the heating season. From October 2021 to March 2022, Mechel will supply approximately 360,000 tonnes of coal. During the last winter season, Mechel has provided Neryungrinskaya Power Station with a similar amount.

"We have been working together with Far Eastern energy providers for decades, and this new contract only strengthens this longstanding partnership. Approximately 10-12% of thermal coal sold by Mechel's mining division goes to Far Eastern Energy Company. The company confirmed their interest in our coal, and we in our turn are ready to provide them with coal of requisite quality," Mechel PAO's Chief Executive Officer Oleg Korzhov noted.

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Mechel PAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com

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Mechel is an international mining and steel company. Its products are marketed in Europe, Asia, North and South America, Africa. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and electric power. All of its enterprises work in a single production chain, from raw materials to high value-added products.

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Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our Form 20-F. These documents contain and identify important factors, including those contained in the section captioned "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.

SOURCE: PJSC Mechel

View source version on accesswire.com:
https://www.accesswire.com/665114/PJSC-Mechel-Mechel-to-Supply-Coal-to-Neryungrinskaya-Power-Station

FAQ

What is the new coal supply contract signed by Mechel PAO (MTL)?

Mechel PAO has signed a contract to supply 360,000 tonnes of thermal coal to Neryungrinskaya Power Station from October 2021 to March 2022.

How will the coal supply contract affect Mechel's (MTL) revenue?

The contract secures stable revenue for Mechel during the heating season, as it mirrors the previous year's supply.

What percentage of Mechel's coal is supplied to Far-Eastern Energy Company?

Approximately 10-12% of thermal coal sold by Mechel's mining division is supplied to Far-Eastern Energy Company.

When does the coal supply contract with Neryungrinskaya Power Station start?

The coal supply contract will start in October 2021 and run until March 2022.

How does this contract impact the partnership between Mechel (MTL) and Far-Eastern Energy Company?

The contract strengthens the long-term partnership between Mechel and Far-Eastern Energy Company, ensuring continued collaboration.