Bloomberg reports that Xstrata Plc, the world’s largest exporter of power-station coal, said its coal unit has asked suppliers to operations in Queensland, Australia, to cut prices by 20 percent if possible.

The majority of those contacted are long-term suppliers whose contracts will remain in place, Xstrata Coal spokesman James Rickards wrote in an e-mailed response to questions. The company aims to curb costs, he said.

The Brisbane-based Courier Mail reported earlier that Xstrata took the measure because coking coal revenue had lagged behind higher prices for materials such as explosives and fuel. It cited an unidentified Xstrata spokesman.

“This request relates only to Xstrata Coal Queensland,” Claire Divver, a spokeswoman for Xstrata in London, said in an e-mailed response to queries from Bloomberg.

Source: Bloomberg