Russia. Mechel discusses the prospects on the development of Elga deposit with South Korean STX and Posco

Mechel Plc. concluded an agreement of long-term cooperation with South Korean STX at the business summit of the Forum of Asian-Pacific Economic Cooperation, the company’s press service reports. Besides, the Chairman of the Board of Directors of Mechel, Igor Zyuzin and President of Posco summarized the results of the cooperation in accordance with the agreement about the projects signed by the companies in 2011. The agreement presupposes the strengthening and expanding of cooperation for the realization of the joint projects in the sphere of metallurgy, mining and logistics.

The agreement between Mechel and STX (one of the largest south Korean corporations specialized in shipbuilding, building, sea transportation and energetics) is aimed at mutually beneficial partnership between the companies. The parties are going to cooperate in the transportation of the products produced by Mechel and STX and the realization of possible joint projects on long-term basis. Particularly, the joint work presupposes cooperation in the sphere of coal products delivery, joint participation in the projects aimed at tje development of ports and port terminals in the Far East as well as cooperation in the sphere of sea transportation.

At the meeting with Posco the parties considered their further strategical partnership and the issues of the expanding of cooperation in the sphere of delivery of coal products of Mechel to the enterprises of Posco. Besides, the building of a workers’ settlement at Elga coal complex was discussed. Posco’s building subdivision Posco A&C will be the general contractor.

The building of a workers’ settlement at the territory of Elga coal complex is an important point in the development of the Elga deposit, one of the largest coking coal deposits with 2.2 billion tons of reserves (JORC) highly sought after in the international market.



Translated by Alexandra Utyasheva

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