: GEN ZIAULHAQ, BB: BENAZIR BHUTTO, NS: NAWAZ SHARIF, PM: PERVAIZ MUSHARRAF, YRG: YOUSUF RAZA GILANI,
The aforementioned companies, FAS claims, set contractual prices for grade Zh (fat) and GZh
(gas fat) coking coals under supply agreements with foreign and domestic suppliers at completely different levels, which is a breach of laws.
Raspadskaya disclosed the 2Q10 average FCA Mezhdurechensk selling price was $120/ton of GZh
coking coal (up 21% QoQ).
The company confirmed that its plans to start developing 240 mln tons of semi-hard coking coal (GZh
grade) at the Zhernovskoye-1 deposit in Kuzbass soon, and this could cover up to 50% of NLMK's needs in three years.
Moreover, the mine produced 23% of Russia's fat coking coals last year (Zh, GZh
, GZhO grades totalling 30.4 mln tons).
coking coal concentrate was raised 16% to $130/ton (RUB3,800/ton) for 2Q10, while we had expected a 10% increase to $120/ton (RUB3,600/ton).
According to NLMK's CFO, the cash cost of semi-soft coking coal concentrate (GZh
) will be around $30/ton and the mine may produce 3 mln tons of coal in 3-4 years time.
2010E and 2011E domestic price for GZh
grade (Raspadskaya) upgraded by 19% and 18%.