Luscar Coal has agreed to supply Japanese steel mills with coking coal from its Gregg River operation in Alberta.
However, the new contracts reflect the troubled Asian economy as they have a duration of just one year compared with 15 years previously. Also, the price of $34 per tonne is substantially lower than in the past.
The new contracts call for Luscar to deliver 1 million tonnes for one year, beginning April 1.
According to the company, lower prices will be partially offset by lower operating, rail and port costs.
Luscar acquired the Gregg River mine last year after merging with Manalta Coal.
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