METALLOINVEST and OAO Magnitogorsk Iron & Steel Works announced the signing of a long-term contract increasing supply of iron ore.
The new contract specifies the pricing structure for the supplied products based on existing market indicators and price dynamics of the global iron ore market. According to the contract there will be an increase in the supply of iron ore products, that will be delivered to MMK's production sites from Lebedinsky GOK and Mikhailovsky GOK.
Mr Eduard Potapov CEO of Management Company METALLOINVEST commented that "METALLOINVEST's production capacities allow the Company to satisfy the growing demand for high quality iron ore products on the Russian market, which has always been one of our priorities. In line with the contract, we will ensure the increase in supply of iron ore MMK, one of our reliable partners."
Mr Boris Dubrovsky CEO of MMK added that "The increase in supply of iron ore products gives MMK greater raw materials security and will have a positive impact on, amongst other aspects, the company's financial performance." He also underlined that the raw materials provided by METALLOINVEST fully satisfy the plant's requirements.
The contract is a continuation of the collaboration between METALLOINVEST and MMK. The previous contract was signed in 2011.