The China National Coal Group Corporation (ChinaCoal) has inked medium-to-long-term coal supply deals with six centrally administered state-owned power producers.
According to the contracts, between 2019 and 2023, ChinaCoal will provide more than 500 million tonnes of coal to China Huaneng Group Co. Ltd, China Huadian Corporation Ltd., State Power Investment Corporation Ltd., China Resources Power Holdings Co. Ltd. and SDIC Power Holdings Co. Ltd.
In 2019, coal supply by ChinaCoal will reach 97 million tonnes, and subsequent annual supply will increase gradually, according to the contract.
Between 2019 and 2021, the long-term contract price is set at 535 yuan (79 U.S. dollars) per tonne. On this basis, an adjustment can be made every month.
Between 2021 and 2023, prices will be set by market development. No price changes will occur if no policy adjustments are put in place.
