Korea Western Power Company agreed to take delivery of some Australian coal under 2009 contracts for USD 80 a metric ton.
Korea Western Power Company one of six generating units of state run Korea Electric Power Corporation agreed to take delivery of some Australian coal under 2009 contracts for USD 80 a metric ton. Mr Son Dong Hee CEO of Korea Western Power Company on the sidelines of a conference in Seoul said that the price of coal, which fuels about 40% of South Korea"s power generation may fall further.
He said that prices of coal used in power stations at Australia"s Newcastle port, a benchmark for Asia, have slumped more than 50% from a record in July on lower crude oil prices and concerns the global recession will curb demand. The cost of importing coal for South Korean utilities has also declined from a high of USD 199 a tonnes in July.
According to the global COAL NEWC Index, the weekly index for Newcastle thermal coal prices was at USD 80.24 a tonnes in the week to February 13. Xstrata Plc, BHP Billiton Limited and Rio Tinto Group are among mining companies that ship coal through the New South Wales port.
Mr Son said that the annual price talks between overseas coal producers and South Korean utilities are still ongoing.