Hyundai Steel Co. South Korea's No.2 steelmaker, said ON Wednesday it has signed a contract to buy coking coal from a Russian mining company.
Under the contract with Mechel OAO, Hyundai Steel will buy 200,000 tons of coking coal for five years beginning in April 2010. The financial terms of the deal were not disclosed.
"Through the deal, Hyundai Steel will diversify its coal suppliers and improve its long-term coal supply stability," said a company official.
Mechel, established in 2003, is one of Russia's leading mining and metals companies.
Late last year, Hyundai Steel also reached a deal to buy more than one million tons of coal annually for the next 10 years from Australia's Rio Tinto, the world's second-largest mining firm.
In May last year, Hyundai Steel signed a deal with another Australian firm, Wesfarmers Ltd., securing 500,000 tons of coal annually for the next five years.
Hyundai Steel and other local steelmakers such as POSCO have been seeking to secure stable supplies of raw materials such as iron ore and coking coal as demand for steel from automakers and shipbuilders is expected to increase.
Source: Trading Markets
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