BlueScope agrees 5-year supply deal with Solid Energy
Australia’s biggest steelmaker BlueScope Steel Limited is reported to have signed a contract to buy coal from Solid Energy New Zealand Limited for five years, securing supply for Glenbrook, its biggest mill in New Zealand.
Under the agreement, Solid Energy will supply 770,000 tpa of coal, BlueScope’s New Zealand Steel unit said. Base prices will rise about 40% from 2007 with quarterly adjustments based on a basket of New Zealand and Australian cost indexes.
BlueScope said that the cost is significantly below the annually fixed, US dollar-based global index for thermal coal.
“Pricing under the new contract is expected to maintain BlueScope Steel's competitive position in the industry,” the company said in a statement
