Wednesday, January 28, 2009

National Coal Corp Signs Three-Year Coal Contract

East Tennessee coal miner, National Coal Corp. has signed a three-year coal contract to supply 560,000 tons of coal at $95 a ton, the company said on Wednesday.

Deliveries “will have a significant impact on both the Company’s average selling price and its committed tons through 2011,” and will begin during the second quarter. The company has not named the other party or parties to the contract.

With the addition of the new contract, National Coal commitments for 2009 have increased to 2.2 million tons of coal, up from 2 million. The average selling price for 2009 has increased to $73.94 per ton, up from $70.40; for 2010 have increased from 0.7MT to 0.9MT with an increase in the average selling price from
$77.35/t to $81.03/t; and for 2011, tons committed stand at about 0.2MT at $95.00/t.

“The new contract reflects our ongoing commitment to closing new, long-term sales agreements. Part of our plan has always been securing such agreements at a higher price per ton, and this is no exception,” President and CEO Daniel Roling said in a statement.

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