Japan-based electricity generator Tohoku Electric Power had agreed on $80-$83/mt FOB 

Newcastle  with  some  of  its Australian thermal coal suppliers for annual negotiated term 

contracts starting April 1, a source familiar with the matter said Friday. 

The agreed price range of $80-$83/mt FOB Newcastle for premium-grade Australian 6,32

2  kcal/kg  gross-as-received  thermal  coal  is unusual this year, as it was struck between 

Tohoku  Electric  and Australian coal producers other than Glencore or Rio Tinto, the two 

companies  that  historically  have  taken a leading role as suppliers in these annual price 

talks. 

Several  sources  said that Tohoku Electric was still in negotiations with Glencore to settle 

a price for thermal coal to be delivered in fiscal 2017-2018, the deadline for which is April 

1. 

Initial  market  reaction  to the price settlement was that it was favorable to both Japanese 

buyers and Australian sellers.