The company also recently signed a new three-year contract with India’s largest private company, the Tata Group, to supply high quality coking coal to Tata Steel.
This follows the renewal of Solid Energy’s $120 million contract with India’s largest integrated steel mill, SAIL (Steel Authority of India) to provide 1.5 million tonnes of coal over five years.
“The international demand for coal, and in particular for New Zealand’s unique coal, is currently very high. Not only has Solid Energy secured new and continuing contracts in the Indian market, but also in Japan and China,” said Solid Energy international marketing manager Simon Doig.
Sales of coal to steel manufacturers and coke makers account for more than 75% of the Solid Energy’s exports, with Japan remaining the company’s largest international market and accounting for almost half of its sales.
Since 1997 the company has supplied two million tonnes to Nippon Steel. Its long-term contract with Mitsubishi Chemical Corporation has been extended to 2006, which will mark 30 years supply to Solid Energy’s longest-term international customer.
The company also long-term contracts for hard coking coals with steel makers Baosteel of China and ISCOR of South Africa, along with short-term contracts with two Brazilian steelmakers.
