For the July to September 2012 quarter, weighted average free-on-board US dollar contract prices of Curragh metallurgical coal (hard coking, semi-hard coking and pulverised coal injection) would increase by approximately 4% compared to the April to June 2012 quarter prices, the company said in a statement.

All of Curragh’s contracted tonnage for this quarter is under the quarterly pricing mechanism.

Wesfarmers Resources managing director Stewart Butel said the company was satisfied with the result of its negotiations for Curragh’s hard coking coal, with price settlements for the September quarter at approximately $US220 per tonne FOB Queensland.

Approximately 95% of the September quarter sales tonnage is forecast at the new contract prices, with the balance at carryover prices from the previous quarter.

Butel said commissioning of the new coal handling and preparation plant was successfully completed during the June quarter, while Curragh’s $286 million mine expansion of up to 8.5 million tonnes of export met coal capacity had now achieved project completion.