The world's largest steelmaker ArcelorMittal (MT) has agreed to supply no less than 550,000 tons of liquid pig iron to Russian steel producer Evraz Group SA's (EVR.LN) Czech unit, the Russian company said Monday.

The supply of pig iron from ArcelorMittal Ostrava, a ArcelorMittal unit, to Evraz Vitkovice Steel, Evraz's steel making facility in the Czech Republic, will begin early November and "will cover approximately the next five quarters," Evraz said in a statement.

"The agreement is based on a price formula that both sides consider mutually acceptable," Evraz said.

The supply of a minimum of 550,000 tons of pig iron a year will cover about 80% of Evraz' production facility.

-By Jacob Gronholt-Pedersen, Dow Jones Newswires; +7 495 232 9197; jacob.pedersen@dowjones.com