Reuters reported the export price agreed on by the Chinese producer was US$29.27 per tonne for the fiscal year ended 2003.

The drop in contract price by more than four percent will affect the coal producer, due to almost 50% of the company’s sales are obtained from exports.

Rueters said the price was US$1.35/tonne lower than the previous year despite analysts predicting the value of thermal coal would drop by US$2/tonne.