Big Rivers Electric Corp. agreed to purchase 900,000 tons of 11,500 Btu/lb coal over the next three years from Alliance Resource Partners LP, according to a new regulatory filing.
The Kentucky-based generation and transmission co-op told the Kentucky Public Service Commission it is buying 300,000 tons each year through 2020 from the Tulsa, Okla.-based producer.
The coal will come from Alliance's underground River View mine, which mines in the Western Kentucky Nos. 9 and 11 seams, and produced nearly 9 million tons of coal in 2017 and 8.6 million tons in 2016, U.S. Mine Safety and Health Administration figures show.
The delivery point will be Alliance's River View Dock at mile point 842.9 on the Ohio River. The contract allows Big Rivers to direct Alliance to ship the coal from a different location, "provided, however, any increase in transportation expense for the cost of transporting the coal to the destination(s) designated by buyer shall be for buyer's account."
The base price of the coal f.o.b. barge is $1.5870/MMBtu in 2018, $1.6413/MMBtu in 2019 and $1.6957/MMBtu in 2020.
Specifications for the coal include a minimum of 11,500 Btu/lb, maximum ash of 7.5 lbs/MMBtu, maximum moisture of 11 lbs/MMBtu and a minimum of 2 lbs and maximum 2.7 lbs SO2/MMBtu.
Bob Matyi is a reporter for S&P Global Platts, which, like S&P Global Market Intelligence, is owned by S&P Global Inc.
