COLOWYO AGREES TO SELL
COAL TO COLORADO-UTEColowyo Coal Co., jointly owned by units of Grace Energy Corp. and M.A. Hanna Co., reached an interim agreement for the continued supply of coal to Colorado-Ute Electric Association Inc., which filed for Chapter 11 bankruptcy protection on March 30, 1990.
Colorado-Ute is Colowyo's largest customer, and supplies power to 75 percent of Colorado.
Under the 120-day interim agreement, Colowyo will continue providing coal in the amounts specified in its long-term contract with Colorado-Ute, but at current spot market prices rather than the higher long-term price specified in the contract.
The shortfall between the spot market price and the higher contract price will be treated as a claim in the bankruptcy proceedings, Grace said.
AUSTRALIAN COAL OUTPUT
FORECAST TO HOLD STEADY
SYDNEY, Australia - Australian coal production for the year beginning July 1, 1990, is likely to total 165.0 million metric tons, barely changed from 164.9 million in the prior 12 months, the Australian Bureau of Agricultural and Resource Economics says.
Production in the first half of the year that began July 1, 1989, was up about 13 percent as the industry introduced more efficient work and management practices, Abare said in its Agriculture and Resources Quarterly.
Efficiency was likely to rise further with new labor agreements, Abare said.
With export volumes and prices rising, Abare said, Australian producers' revenue would rise 11 percent to A$6.3 billion (US$4.7 billion) during the year, up from A$5.8 billion in 1989-90.