Reports from China suggest that the Shandong Coking Industry Association, which represents 55 large coking coal companies in Shandong province, has signed an agreement of intention to purchase 20 million tonnes of coking coal from Swiss firms Glencore and International Metallurgical Resources (IMR).
The deal is said to be worth $3 billion, however there is some scepticism amonigst analysts, especially as China only imported 7 million tonnes of coking coal in 2008.
"It is only an intention, not a firm supply contract," said an un-named official at the Shandong Coking Industry Association. The 20 million tonnes would be delivered over a year.
The coastal province of Shandong has a combined annual coking capacity of 45 million tonnes, and needs 60 million tonnes of coking coal a year, the association said.
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