Gloucester contracts discounted 60%

GLOUCESTER Coal has settled coking coal contracts with Japanese buyers at 60% lower than last year’s prices.
Gloucester contracts discounted 60% Gloucester contracts discounted 60% Gloucester contracts discounted 60% Gloucester contracts discounted 60% Gloucester contracts discounted 60%

Courtesy Gloucester Coal

Angie Tomlinson

The New South Wales producer said the weighted average, US dollar, free-on-board price for semi-hard coking coal for the 2009-10 Japanese financial year was at a 60% discount to prices achieved in 2008-09.

However, Gloucester said the impact of the fall would be softened by completion of deliveries in the June quarter of remaining 2008-09 Japanese financial year carryover tonnages at last year’s prices.

Total deliveries in 2009-10, including carryover, are expected to be 700,000 tonnes.

“Despite the year-on-year price reductions, the new coking coal prices represent a good outcome relative to Gloucester’s historical prices,” Gloucester chief executive officer Rob Lord said.

“It is important that we have maintained healthy volumes of coking coal for the coming year, ensuring we take best advantage of the company’s production and shipping capacity.”

Gloucester’s reduced price contracts are in line with other reported settlements by Australian coal companies.

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