Guangdong power firms ink 32.5MT coal supply contract with Adaro

Three major electricity companies of Guangdong Province of China signed a contract with PT. Adaro Indonesia this week to import 32.5 million tons of coal in the next five years, Chinese media reported.

According to the contract, the Indonesian coal producer will supply 15 million tons, 9 million tons and 8.5 million tons of coal to Guangdong Yudean Group Co Ltd, Shenzhen Energy Corporation and Huaneng Power International INC respectively between 2008 and 2012.

This is the largest coal import deal energy-hungry Guangdong has signed with a foreign company.

Li Xiangming, deputy director of Guangdong Provincial Economic and Trade Commission, said the contract is of great significance in ensuring coal supply to the prosperous province.

Last year alone, Guangdong consumed more than 100 million tons of coal, accounting for about eight percent of the country's total. And all the coal had to be purchased from outside the province.

Guangdong, which lacks natural and energy resources, has to annually increase its coal imports to support its economic development as major Chinese coal producers have failed to satisfy its demand. (*)