Metalloinvest and Baosteel Group signed an Agreement of Cooperation Intent

Metalloinvest Holding, the largest iron ore producer in Russia and CIS announced that it has signed a cooperation agreement with Baosteel Group Xinjiang Bayi Steel INTERNATIONAL TRADE Co., Ltd. a leading state-owned Chinese steel producer.

The agreement was signed at the Fifth Russian-Chinese Economic Forum which took place within the framework of the 15th regular meeting between the Prime Minister of Russia Vladimir Putin and the Premier of China's State Council Wen Jiabao.

From the side of Metalloinvest the Agreement was signed by Eduard Potapov, Chief Executive Officer of the company, from the side of Baosteel Group – by Mr. Caozhen, General Manager of Baosteel Group Xinjiang Bayi Steel INTERNATIONAL TRADE Co., Ltd.

According to the terms of the agreement, Metalloinvest will supply 2 million tonnes of iron ore and iron ore pellets to Baosteel Group during 2011. The goods will be delivered by sea and railways. Prices for supplied products will be linked to the international market rates as at the date of contract signing. In addition, both parties have agreed to conduct technological exchanges for maximum mutual benefits in use of iron ore materials.

Eduard Potapov, Chief Executive Officer of Metalloinvest Holding, commented: “Our significant resources and modern equipment allow us to produce high-quality iron ore materials which are in demand in the international markets. Our products are successfully marketed in Russia and CIS as well as in China. We are suppliers of the largest metallurgical companies of the country. I am confident that the Agreement signed today will serve as a basis of a long-term and mutually beneficial cooperation”. He also remarked that “long-term contracts for iron ore materials supplies allow planning investment programmes for the Holding’s plants”.