Price of coal from South Africa of $134 per t published by PGO is incorrect, says Steel Mont

12:27, 09.12.2014 1 min read

Information published by the Public Prosecutor's Office of Ukraine that coal from South Africa was bought by state enterprise Ukrinterenergo at the price of $134 per tonne is incorrect, according to a statement of the coal supplier - Steel Mont Trading Ltd.

Steel Mont said that the contract with Ukrinterenergo envisaged coal supply on the CIF conditions. Amendments were made for direct shipment of coal to Ukrainian thermal power plants. According to the amendments, MTA Service unloaded coal at Ukrainian ports. The service cost $9.5 per tonne (value added tax inclusively). The cost of coal transportation to thermal power plants by rail adds $10-11 per tonne (VAT inclusively).

"The amendments to the contract set the price of coal at $107-110 per tonne with delivery to Trypilska and Zmiyivska thermal power plants… The price of $134 per tonne presented in the Ukrainian mass media is incorrect," reads the report.