China orders miners, utilities to sign more long-term coal deals to ease price woes

Beijing

CHINA'S embattled power companies may receive a long sought after reprieve from rising coal prices after the country's state planner ordered miners to increase the share of supplies sold through lower-priced long-term contracts.

The National Development and Reform Commission (NDRC), in an April 7 document, ordered coal companies and utilities to fix 75 per cent of their total coal purchases through long-term contracts by April 30, up from the current 60 per cent, three power utility officials who received the notice said this week.