Wesfarmers Ltd
(ASX:WES) says it has secured a rise to its metallurgical coal prices for the first three months to 31 March 2011.
The retailer and coal miner says quarterly price negotiations for metallurgical coal from Wesfarmers Resources’ Curragh mine in Queensland’s Bowen Basin have now finished with most customers.
For the first quarter of 2011 new contract prices of Curragh’s metallurgical coal will rise by around 12 per cent compared to the last quarter of 2010.
Managing director of Wesfarmers Resources Stewart Butel says the company is satisfied with the latest price settlements of around $US221 per tonne, free on board from Queensland.
Mr Butel also says the recent severe flooding in Queensland has significantly impacted Curragh’s production, adding that a force majeure remains in place for export and domestic contracts.
Curragh's metallurgical coal sales volume is forecast to be in the range of between 5.8 million to 6.2 million tonnes the current financial year, easing from a pre-flood forecast of between 6 million to 6.5 million tonnes.
Wesfarmers generated a net profit of $1.6 billion in the year ended 30 June 2010.
