Russian steelmaker OJSC Magnitogorsk Iron and Steel Works (MMK) and Eurasian Resources Group (ERG), a natural resources producer, have signed a strategic agreement for the supply of iron ore.

The agreement provides for the supply of more than 30Mt million tonnes of iron ore, including pellets and concentrate, through to 2020 and represents the largest agreement of its kind in recent years.

The ore, pellets and concentrate will come from the Sokolovsko-Sarbayskaya mine owned by JSC SSGPO, part of ERG.

According to MMK, the new contract provides the steelmaker with all the iron ore it will need over the next four years. For SSGPO, a leading producer and exporter of iron ore in the Eurasian region, the deal is said to secure guaranteed sales volumes.

The new agreement was signed by the CEO of OJSC MMK CEO Pavel Shilyaev, and ERG’s sales and executive director Yuri Sentsov. The signing was attended by the Chairman of OJSC MMK’s chairman Viktor Rashnikov, and Alexander Mashkevich, ERG’s chairman, were both present at the signing ceremony.

Rashnikov said that MMK continues to develop its partnership with ERG, one of the biggest suppliers of high quality iron ore. “Our relationship is based on long-term and mutually beneficial co-operation,” he said, adding that this long-term agreement is at core of the steelmaker’s corporate development programme and aims to secure the company’s supply of raw materials.”

ERG’s Mashkevich said: “The long-term agreement with MMK reinforces our reputation as a reliable partner and a customer-oriented business”. He said that the contract was also key to securing the long-term sustainable growth of JSC SSGPO, which is a major enterprise for the Kostanay Region and Kazakhstan as a whole. “We very much look forward to a successful partnership with MMK over the coming years.”