Regional Coal: Philippines' Napocor to buy coal from Australia

Australia will sell 935,000 tonnes of coal over two years to the Philippines, Australia's Prime Minister John Howard has announced as reported by AAP News.

The deal, announced after Howard's talks with Philippines President Gloria Arroyo, will be worth $50 million.

The coal will be bought by the Philippines National Power Corporation (Napocor), which has not been using Australian coal.

The deal is a major boost to Australia's exports to the Philippines.

In 2002 it sold only $1.156 billion worth of goods, with dairy products the most important.

Howard also announced new cooperation to reduce the regulatory minefield that has deterred Australians from investing in the Philippines.

He said he and President Arroyo had agreed that bodies like the Australian Competition and Consumer Commission and its Filipino counterpart should exchange ideas on how regulations could be streamlined.

This should lead to a smoother regulatory process, Howard said. (*)