Australian coal industry sources said Japanese electricity utilities are demanding price cuts in annual coal contract negotiations underway in Tokyo. But the sources said they were unable to substantiate reports here that one of the largest steaming coal customers &lt;Chugoku Electric Power Co Inc> threatened to stop taking deliveries until new prices are set. Coal exporters want to maintain last years 32 U.S. Dlrs a tonne price which expired at the end of Japans fiscal year on March 31 while the Japanese want to pay no more than the 27-28 U.S. Dlrs secured with China and South Africa. Ross McKinnon general manager of &lt;Thiess Dampier Mitsui Coal Pty Ltd> which annually exports about one mln tonnes of steaming coal to Japan mainly to Chugoku tolds he had not been informed of any refusal to take shipments. McKinnon said he could not recall when a Japanese contract had been settled before the previous one had expired and said controlled leaks were commonplace during talks. But Australian foreign currency markets took the reports seriously enough for dealers to say it added nervousness to trading with the local dollar settling on 0.7080 U.S. Cents at midsession against its 0.7120 opening. Coal was Australias largest single export in the fiscal year ended June 30 1986 with shipments reaching 90.49 mln tonnes worth 5.21 billion dlrs or 15.9 pct of total exports. Japan is the largest customer for the crucial steaming coal sector and took 14.97 mln tonnes of total exports of 43.3 mln tonnes in calendar 1986. Sydney resources analyst Ian Story said the appreciation of the Australian dollar against the U.S. Currency meant steaming coal exporters were now receiving just 44.72 dlrs a tonne against 52.42 dlrs when last years contract was negotiated.
AUSTRALIAN COAL EXPORTERS FACE TOUGH JAPAN TALKS