Shanxi ink 89.47 million tonnes thermal coal contract for 2009

Sunday, 16 Nov 2008

It is reported that next year, Shanxi's total tonnage of thermal coal contract is to reach 89.47 million tonnes to ensure the stable supply for provincial key enterprises and industries.

Market analysts said that in the meanwhile, recent negative factors spreading the whole coal market are weighing on prices downward.

Among the thermal coal pacts, state owned key miners will supply coal of 38.44 million tonnes, 9.65 million tonnes more than last year, amounting for 43% of the total. And local miners will supply coal of 51.03 million tonnes.

Shanxi Province Economic & Trade Commission, the meeting holder, said that the arranged contracts are basically to meet provincial power plants' normal demands.

In 2008, the number of power plants enrolled in local guaranteed coal supply list has increased to 25 from former 20 with the total capacity enhancing to 28.28 million KWH from previous 21.70 million KWH. Under this situation, 2009 thermal coal tonnage has added 18.3 million tonnes over the 2007 guide plan.

The chief official of SPETC said that, "as for price, we suggest the buyers and sellers to fix prices by negotiation based on state and regional coal price frame. And the regional price for coal of the same quality is a bit lower than the price for coal users outside the province in principle."