Taiwan Power Buys 17 Million Tons of Coal for 2008 to 2018

Taiwan Power Co., the island's biggest electricity producer, bought 17 million metric tons of power station coal to be delivered starting next year until as late as 2018, a company official said.

The company signed six-year and eight-year contracts with two suppliers from China for 500,000 tons each annually, the official said, asking not to be identified because of company rules.

It also agreed to buy 500,000 tons annually from an Australian producer and the same amount from an Indonesian supplier over 10 years, he said. Taiwan Power is also negotiating for a further 500,000 tons to be delivered annually for 8 years, he said, declining to give details of the prices or the sellers.

The price of coal loaded at Newcastle port was $67.42 a ton in the week ended Sept. 21, according to globalCOAL NEWC Index. Prices reached a record of $72.37 last month, after some Indonesian mines said they would miss contracted shipments, Japan bought more coal after an earthquake closed a nuclear plant and Newcastle shipments were disrupted by storms.

Taiwan Power bought 840,000 tons of coal in August, and 1.19 million tons in July for the fourth quarter.