October 08, 2008

Czech Coal may resume talks with CEZ on coal supplies

Czech weekly Euro, citing an unnamed source, reported that Czech Coal, the owner of the largest brown coal mines in the Czech Republic, may resume talks with Czech utility CEZ over long term coal supplies or forming a joint venture should current negotiations with Germany's EON fail.

The report added that CEZ and Czech Coal failed to agree in June on future cooperation, prompting the coal miner to began talks with EON instead regarding the construction of a EUR 2 billion power plant as part of a joint venture.

But an unnamed Czech Coal representative told Czech weekly Euro that the company could renew talks with CEZ on either long term coal supplies or forming a joint venture should the talks with EON fail. It added that “Business is business and we aren't against resuming talks.”

EON's exclusivity period for talks with Czech Coal will expire by the end of September.