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Foresight awarded 3-year contract with Kentucky utility

Foresight Energy LP was awarded a 360,000-ton coal contract to be provided to East Kentucky Power Cooperative Inc. over three years.

Documents from the Kentucky Public Service Commission show that Foresight agreed to supply the coal for EKPC's Spurlock power station at a rate of 120,000 tons per year. Deliveries are scheduled to begin Jan. 1, 2017.

Prices for the coal, subject to quality adjustments, increase annually and start at $31.25 per ton in 2017 and rise to $34.90 per ton in 2019. The coal is spec'd at 11,300 Btu/lb minimum, 8.5% ash maximum, 13.5% moisture maximum and 5.5 lbs. sulfur dioxide maximum.

The contract also provides that Murray Energy Corp., which owns a major stake in Foresight, can provide coal from its New Era and New Future mines.