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Mechel, Posco Management Sign Two Agreements
06/23/2011 - A meeting between the management of Mechel and Posco on June 21 resulted in the signing of the Framework Project Agreement and the Agreement on Construction of a Permanent Shift Worker Settlement for Elga Coal Complex.
A meeting between the management of Mechel and Posco on June 21 resulted in the signing of the Framework Project Agreement and the Agreement on Construction of a Permanent Shift Worker Settlement for Elga Coal Complex.
The Framework Project Agreement was signed by Mechel OAO’s Chairman of the Board of Directors Igor Zyuzin and Posco’s Chief Executive Officer Chung Joon-Yang. This agreement is a follow-on to the Agreement of Intent, signed on November 10, 2010, during the official visit of the President of the Russian Federation Dmitry Medvedev to the Republic of Korea.
The Framework Project Agreement declares that the two sides agreed to strengthen and expand their cooperation to include analysis and implementation of joint projects in the steel industry, mining, and logistics by setting up work groups and holding mutual consultations and meetings. One of the document’s points is the construction of a permanent shift worker settlement for Elga Coal Complex, whose implementation was also specified by a separate agreement.
The Agreement on Construction of a Permanent Worker Settlement for Elga Coal Complex was signed by Mechel Mining Management Co. OOO and the Posco group’s construction division, Posco A&C. The agreement stipulates creation of the company Posco Russia to implement the project.
Posco A&C won the tender for design, construction, delivery, and assembly of residential, public, and amenity spaces for Elga Coal Complex’s permanent shift worker settlement. The tender was held in May 2011.
The permanent shift worker settlement will provide space for 3000 residents and include a public center and five residential areas. It is due to be completed in June 2013.
Mechel is one of the leading Russian mining and metals companies. Its business includes four segments: mining, steel, ferroalloy, and power. The company unites producers of coal, iron ore concentrate, nickel, steel, ferrochrome, ferrosilicon, rolled products, hardware, heat and electric power. Its products are marketed domestically and internationally.
