China Knowledge reported that 5 key power groups in China recently signed coal purchase contracts with the major coal miners in Shandong Province after nearly six months of negotiation over the prices.

The five power groups, namely China Huaneng Group, China Datang Corp, China Guodian Corp, China Huadian Corp and China Power Investment Corp agreed to pay CNY 15 or 4%, more than that of a year earlier for each ton of coal they are going buy from these coal miners this year.

The price is far less than CNY 50 per ton proposed by the coal miners at the end of last year.

Mr Sun Binfu deputy general manager of Huadian Coal Industry Group sad the move will help consolidate the long-term partnership between domestic electricity generators and coal producers, adding that China Huadian will buy 7 million tons of coal this year.

(Sourced from China Knowledge)