Annual report 2007 - Magnitogorsk Iron & Steel Works ...

ANNUAL REPORT OPEN JOINT-STOCK COMPANY MAGNITOGORSK IRON & STEEL WORKS
In 2007 OJSC MMK made major transactions regarding the following:
1) contract # Е 1 09 9 for the supply of iron ore materials between OJSC MMK and
ENRC Marketing AG (Switzerland) on the following terms:
• subject– supply of iron ore materials;
• quantity — 143 600 000 tons;
• price — USD 8 400 000 000 (exclusive of VAT);
• delivery period — till 31.03.2017;
• settlement procedure –payments in every delivery month, pursuant to proforma invoices, in the amount of:
• 30% of the price for the month’s supply on or prior to the 10th calendar date of the delivery month;
• 30% of the price for the month’s supply on or prior to the 20th calendar date of the delivery month;
• 40% of the price for the month’s supply on or prior to the last calendar date of the delivery month;
• The corporate guarantee of JSC Sokolovsko-Sarbaisky Ore Mining and Processing Enterprise provides for ENRC
Marketing AG’s (Switzerland) fulfillment of its obligations.
The guarantee shall be valid until the expiry of the contract and termination of the transactions and obligations
thereunder.
The beneficiaries in the transaction are OJSC MMK and ENRC Marketing AG’s (Switzerland)”.
The Body which approved the transaction is the Board of Directors of OJSC MMK.
2) supply agreement # 1 0033 between OJSC MMK and LLC Chelyabinskregiongas
on the following terms:
• subject – natural gas supply;
• quantity of supply - 3 057 800 thousand cub. m annually;
• delivery period – from 01.01.2008 till 31.12.2012;
• settlement procedure – 70% of the fixed amount payable prior to the 25th of the month, prior to the delivery
month, 30% - prior to the 15th of the delivery month;
Price – based on the wholesale price of gas and the price of procurement and distribution services in accordance
with the procedure established by the Government of the Russian Federation.
There are no beneficiaries under the transaction.
The Body which approved the transaction is the Board of Directors of OJSC MMK.
SEASON 2007
Chairman of the Board of Directors, Victor F.Rashnikov
OJSC MMK
Chief Accountant of OJSC MMK Marina A. Zhemchueva
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