Bloomberg quoted Xstrata Plc said its coal unit has asked suppliers to operations at Queensland in Australia to cut prices by 20% if possible.

Mr James Rickards spokesman of Xstrata Coal said the majority of those contacted are long term suppliers whose contracts will remain in place. The company aims to curb costs.

Ms Claire Divver a spokeswoman for Xstrata in London said “This request relates only to Xstrata Coal Queensland.”

The Brisbane-based Courier Mail reported earlier that Xstrata took the measure because coking coal revenue had lagged behind higher prices for materials such as explosives and fuel. It cited an unidentified Xstrata spokesman.

(Sourced from Bloomberg)