Canadian coal firms deal with Asian steelmakers
Western Canadian coal producers announced that they have signed deals to sell big amount of their production to Asian steel producers. Calgary-based Grande Cache Coal Corp. said it has signed a deal to sell two-third of its annual production in the next year to steel producers in South Korea and Japan. At the same time Vancouver-based Western Canadian Coal Corp landed a six-year deal to supply steel-making coal to South Korean steelmaker POSCO. Grande Cache will export 1.3 million tons of high quality coking coal to POSCO and a group of Japanese steel companies starting from April 1, 2005 for $125 per ton. Western Canadian Coal will supply 3 million tons of pulverized coal and hard coking coal to POSCO's Kwangwang and Pohang plants. The company said contract prices will be negotiated in January 2005. POSCO produces more than 29 million tons of crude steel per year and is one of the world's most profitable steel producers.