Hi guys I am working at one of the power stations that is a...

Hi guys I am working at one of the power stations that is a customer of centennial coal and had a recent discussion with the general manager regarding coal contracts and here were the main points raised.
1 The coal used by NSW power stations is of a low grade and high ash content, which generally would not be used to export unless a washery was built to wash the coal.
2 There is excellent infrastructure close to the power stations to transport coal at a low cost.
3 If a takeover bid from an O/S company was to occur an objection would be lodged to the FIRB to secure its coal supply for the life of the contracts.

I agree current coal contracts are way too cheap and cannot wait for centennial to re negotiate a better price. Centennial has said it wants to have a 50:50 import to export sales ratio, so it should keep on achieving etter pprofitability in the future.