Riversdale Mining, which has operations across Australia and South Africa, has surprised the coal industry by planning longer-term price negotiations with its customers for coking and thermal coals. This is in contrast to the current industry trend of establishing coal prices quarterly, a system used by, among others, BHP Billiton and Macarthur.
Riversdale Mining’s managing director, Steve Mallyon, has said that coking coal price contracts will run annually, rather than quarterly, and that thermal coal pricing contracts will be longer.
“We want to enter into long-term arrangements, we feel that is the most appropriate way for us to do business,” he said.
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