Australia's biggest steelmaker BlueScope Steel Limited has signed a five-year contract to buy coal from Solid Energy New Zealand Limited for the purpose of supplying Glenbrook, its biggest mill in New Zealand.
Under the terms of the agreement, Solid Energy is to supply 770,000 mt of coal per annum. Base prices will rise about 40 percent from 2007 with quarterly adjustments based on New Zealand and Australian cost indexes.
According to Solid Energy, the coal will be supplied from both Rotowaro Mine and East Mine, and the securing of the contract is very important for the future of East Mine.