Duke Energy Kentucky Inc. awarded a 350,000-ton coal supply contract to an Alliance Resource Partners LP affiliate.

Alliance Coal LLC will provide the utility with crushed coal under the contract term of Jan. 26 through Dec. 31, 2017, and the buyer has a plus or minus 20% quarterly tonnage flexibility. The coal is being sourced from Alliance's Tunnel Ridge mine in Ohio County, W.Va.

The coal is spec'd at a minimum 12,600 Btu/lb., maximum 9.3% ash, maximum 7% moisture and a maximum of 4.80 lbs. of sulfur dioxide. The coal is to be delivered f.o.b. barge at the Tunnel Ridge dock located at milepost 82.3 on the Ohio River.

The coal is priced at $40 per ton, subject to certain quality adjustments.