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SunCoke Energy, Inc. (NYSE: SXC) and SunCoke Energy Partners, L.P. (NYSE: SXCP) have long-term, take-or-pay cokemaking contracts with the three integrated steel producers in the U.S.: ArcelorMittal USA, AK Steel Holding Corp. and United States Steel Corp.
(1) AK Steel can terminate the Haverhill 2 contract upon two-year notice and payment of a termination fee (unless the termination occurs after December 31, 2017, in which case the termination fee is not due) if it permanently closes the blast furnace steelmaking facilities at its Ashland Plant; provided that AK Steel has not acquired or commenced construction of a new blast furnace in the United States to replace all or a part of the Ashland Plant iron production
(2) Represents production capacity for blast furnace-sized coke, however, customer takes all on a “run of oven” basis, which represents approximately 578,000 tons per year
(3) Represents minimum annual volume SunCoke must produce; if short of minimum volume, SunCoke typically obligated to secure other coke supply at contract price; minimum typically stated as a percent of facility’s nameplate capacity; subject to tonnage adjustments caused by volatile matter content deviations from the base coal blend
(4) Represents annual volume up to which customer must take all coke production from SunCoke facility; maximum typically stated as a percent of facility’s nameplate capacity; subject to tonnage adjustments caused by volatile matter content deviations from the base coal blend
(5) At Haverhill and Jewell, SunCoke delivers coke to customers and is reimbursed in full for coke transportation costs
Our cokemaking contracts were filed with the SEC as part of our initial public offering in 2011, with any amendments included in subsequent 10-K and 10-Q filings. Some contract terms have been redacted to protect confidentiality. If you would like to access the redacted contracts, please visit www.sec.gov or contact us at firstname.lastname@example.org to receive a link.