Kosep settles 2008 coal supply price from Indonesia

South Korean electricity firm Korean South East Power Co (Kosep) said onTuesday that it has concluded 2008 coal supply price with its Indonesian suppliers.

Senior Manager Fuel Team Yong Jae Lee told reporters that 2008 coal prices was set at US$60 per tones FOB, an increase compared to $45 percent per tonne a year ago.

Lee said the company is currently negotiating for 2009 delivery prices.

Kosep gets 40 percent of its annual coal requirement of 18MTPA from Indonesian suppliers, including Kideco Jaya Agung (2MTPA), Anugrah Bara Kaltim (1.2MTPA), ADaro Indonesia (900,000 TPA), Straits Group (900,000 TPA) and Indominco Mandiri (500,000 TPA) under long-term contracts.

Lee also said that Kosep is also looking for new coal suppliers to diversify its coal supply source. (denny)