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The contracts will be supplied at prevailing market prices, fixed annually, starting at $250/t.
The company has also secured about 600,000t of new thermal coal contracts with Asian customers for the 2009 financial year at an average price of $A135/t FOB.
Whitehaven has also restructured its existing fixed price thermal coal contracts with a major customer – improving prices.
“This restructuring allows Whitehaven to better match delivery of thermal coal contracts to its planned thermal coal production increase and availability of port capacity over the next four years. It also releases higher quality coal for sale into semi-soft coking coal and PCI markets in the short term,” Whitehaven said in a statement this morning.
As part of the restructuring, Whitehaven has agreed to enter into a long-term contract with the customer to supply 1.5Mtpa of thermal coal for 20 years.
The contract will commence in 2012 following completion of other fixed price contracts.
Coal under the new contacts will be priced at a discount to the prevailing thermal coal market price at the time of delivery to enable the customer to recover its cost of restructuring the existing fixed price contracts.
Whitehaven was trading down 1.49% mid-morning at $A3.98.
