Hyundai Steel seals coking coal purchase deal with Russian firm

By Park Sang-soo
SEOUL, June 10 (Yonhap) -- Hyundai Steel Co., South Korea's No. 2 steelmaker,
said 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. 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 1 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.
sam@yna.co.kr
(END)