LONDON, UK, 16 December, 2002 - globalCOAL TM, the coal e-marketplace backed by leading industry consumers & producers, is pleased to announce that it has transacted a record amount of tonnage in Newcastle (Phys NEWC TM) at 1.635 million metric tonnes month-to-date. In addition, a major coal user has made a commitment to place bids, on a regular basis, with an intention to purchase physical tonnage in the Phys NEWC TM market on globalCOAL TM, which will commence in 2003.
Against a background of electricity sector deregulation in Asia and demand for an independently established, transparent and reliable reference price for spot FOB Newcastle thermal coal prices, a Newcastle Index (NEWC Index TM) has been developed with the assistance of the marketplace. Over the past few months, several Asian consumers have linked physical tonnage to globalCOAL's NEWC Index TM due to the robust nature of the corresponding index methodology.
To date, globalCOAL TM has transacted almost four million metric tonnes of Newcastle specification coal on its Standard Coal System (SCS) in 2002 alone, most of which has been traded in the last 6 months after the commencement of the first Newcastle Market Price Initiative (NMPI) in July of 2002. Also, all transactions executed on the SCS system are governed by globalCOAL's Standard Coal Trading Agreement (SCoTA TM) and participation is open to all globalCOAL TM Market Members.
About globalCOAL TM
globalCOAL TM is an Internet-based, electronic marketplace where participants can buy and/or sell coal products and related instruments. In addition, globalCOAL TM offers various value added services across the industry supply chain. The company was founded on April 18, 2001 by Accel-KKR Company LLC, Anglo American plc, BHP Billiton plc, E.ON Kraftwerke GmbH, Enel FTL S.P.A., EPDC Overseas Coal Co., Ltd., Glencore International AG, Rio Tinto plc and TXU Europe Energy Trading Limited and is headquartered in London, England.
globalCOAL's business is founded on four principles:
- Confidentiality: globalCOAL TM will not disclose commercially sensitive information (such as the counterparties to a transaction) to any third party, including globalCOAL TM shareholders.
- Openness: globalCOAL's systems are available for use by all industry participants.
- Independence: globalCOAL TM is a distinct legal entity with an independent management team.
- Neutrality: globalCOAL's Board of Directors provides balanced representation for both buyers and sellers. In addition, globalCOAL TM itself neither buys nor sells coal.
There are currently 33 Market Members participating in the globalCOAL TM Standard Coal System with over 120 client screens. Companies wishing to buy and/or sell coal via globalCOAL's Standard Coal System need to become Market Members by signing globalCOAL's Usage Agreement. Full details are available at www.globalcoal.com. END OF DOCUMENT.
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Issued by Global Coal Limited which is authorised by the Financial Services Authority.
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