Operational Unit Cost Increase, Xstrata Coal Forced To Cut Purchase Coal Price From Coal Suppliers
January 29th, 2010 | File Under : Coal - Companies - Energy - Trade & Market
Xstrata Coal Queensland complained that the unit operating costs increased from year to year, thus affecting the company’s earnings to continue the purchase of coal from several coal suppliers. To overcome the problems faced by Xstrata Coal Queensland sent a letter to suppliers of coal, Xstrata Coal Queensland that will cut the purchase price of coal by 20 percent or coal supplier companies will lose the contract coal purchases.
Chief operating officer of Xstrata Coal Queensland, Reinhold Schmidt, said “that the resources sector has” experienced significant pressure in terms of cost increases over the years and more recently, the volume of sales. The cost of units issued by Xstrata has been much improved compared with general economic and other mining organizations. XCQ office so the company has mandated that all of the site take immediate action to safeguard our future for the benefit of suppliers, employees and shareholders “.
Letter issued by Xstrata Coal Queensland is not a threat to coal suppliers to Xstrata but an appeal to the suppliers in order to accept the situation faced by Xstrata Coal Queensland. Xstrata Coal Queensland hope all coal supply companies can grow better in the future.
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