Xstrata, Chugoku Agree Thermal Coal Price at $129.80, Dow Says
Xstrata Plc (XTA) agreed to sell Australian thermal coal to Chugoku Electric Power Co. for 12 months starting today at $129.80 a metric ton, according to a Dow Jones Newswires report published by Fox Business on its website.
Dow cited a person familiar with the matter that it didn’t identify for the pricing in its report, and gave no figure for the volumes to be supplied by Zug, Switzerland-based Xstrata, the world’s biggest exporter of coal for power stations.
Toru Umeda, a spokesman for Hiroshima, Japan-based Chugoku Electric, declined to comment. James Rickards, a spokesman for Xstrata in Sydney, didn’t immediately return a message left on his mobile phone seeking comment.
Prices for the year starting April 1 may increase to between $125 and $133 a ton, analysts from Bank of America Merrill Lynch, UOB-Kay Hian Ltd., Citigroup Inc. and National Australia Bank Ltd. told Bloomberg News in February as utilities and mining companies began talks. Japanese power companies agreed to pay Xstrata $98 a ton for the 12 months starting April 1, 2010, the company said in August.
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