Rio Tinto, Xstrata in Japan thermal coal price deal

CHUBU Electric Power and Xstrata have agreed a price of around $US70-$US72 a tonne for thermal coal under a long-term contract for the fiscal year starting in April, two people close to the deal said today. Chubu, Japan's third-largest utility by capacity, also agreed with Rio Tinto around the same price for thermal coal for the next fiscal year, the people said. Chubu Electric's Australian thermal coal prices are used as a benchmark by other Japanese utilities.