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Kolmar to supply Yakut coal to Baosteel Resources, the world's largest steel producer

  • Published in Economy
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Kolmar Director General Sergei Tsivilev and Chairman of the Board of Directors of Baosteel Resources Ltd. Li Qinyu signed an agreement on long-term strategic cooperation June 13 in Moscow. It is primarily for the supply of coking coal, mined and processed at the concentrators of the mining company in South Yakutia.

Recall, in May this year, Kolmar announced the signing of the first annual contract with Baosteel for the supply of 240,000 tons of Inaglinsky premium coking coal from the Inaglinskaya-1 Coal-Preparation Plant. The next step was the conclusion of a strategic memorandum.

It should be noted that at the beginning of the month Kolmar General Director Sergei Tsivilev addressed the participants of the panel discussion of the St. Petersburg International Economic Forum that the world steel producers should assess the high quality of South Yakut premium coals. The agreement with the Chinese metallurgical corporation Baosteel Resources was signed at the Chief Office of Kolmar.

Chairman of the Board of Directors of Baosteel Resources Ltd. Li Qinyu stressed that Kolmar is the first and at the moment the main partner of one of the five global steel giants in Russia.

"We are one of the world's largest companies, and our needs are very high. I believe that the volume of our purchases, starting from 200 thousand tons, will only grow,” said the head of the Chinese delegation.

The head of Kolmar, in turn, explained that small volumes would be better to work out all the risks: "In order that then nothing could interfere with the implementation of the Company's main priorities: stability and quality."

Sergei Tsivilev said that the memorandum implies equal partnership aimed at successful work: "I like the way our relations with our Chinese colleagues are developing. We learn to meet their high standards, they in turn learn to make the best use of our coals."

It is worth noting that the signing of the memorandum is one more step towards the development of the ‘South Yakutia’ Advanced Development Zone. Working with one of the giants of the world industry is the driver of economic growth throughout Southern Yakutia and the republic as a whole. After all, we are talking about the creation of new jobs, the company's readiness for new capital expenditures and about investments in technology.

"The strategic agreement signed today will allow us to cooperate not only within the narrow limits of coal supplies, but will also affect adjacent areas, which means that the ‘ South Yakutia’ Advanced Development Zone is expected to develop seriously," the head of Kolmar said.

YSIA