We get enough raw stuff though long-term contracts, Viktor Rashnikov says

23 May 2008 (09:21)

‘Thanks to our long-term contracts, we have no shortage of raw materials at the moment,’ says BOD Chairman of Magnitogorsk Iron & Steel Works (MMK) Viktor Rashnikov. He says these contracts cover most of the company’s needs in terms of iron ore, baking coal, scrap metal, and natural gas, which guarantees stable supply and ensures a better calculation of the enterprise’s production expenses.

For instance, MMK has a ten-year contract for the delivery of iron ore materials, supplied by Sokolovsko-Sarbaiskoye ore mining and processing enterprise based in Kazakhstan. MMK Management Company’s Vice President for Financial and Economic Issues Vladimir Shmakov reports this is the first contract signed by a Russian metallurgical enterprise for such a long period of time. Apart from this, the plant signed a number of five-year contracts for the delivery of baking coal, supplied by Raspadskiy Ugol, Kuzmetugol, Sibuglem, and Mechel. The company’s supply of metal stock and natural gas is fully covered by the company’s five-year contracts with Profit and Chelyabinskregiongas, respectively. In addition, MMK has a contract for the delivery of natural gas with Novatek; this contract only expires in 2015.

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