Accordingly, the company said it had taken steps to purchase 1.2 million metric tonnes from a term tender awarded on 8 November while the remainder was to be bought via six spot tenders.

Lanka Coal said five of those spot tenders have already been awarded and four of them were given to the lowest bidder.

Only two tenders had to be rejected, the statement said. The first, after the bidder wished to change the port the coal was being shipped from, and the second, after it was found that the bidder’s price was $ 7 higher than global prices.

“The Lanka Coal Company follows internationally accepted indices when evaluating prices of tenders, and during the last few months, coal was purchased for prices as low as $ 53.94, $ 58.11 and $ 59.50.

It is an accepted fact that coal prices are at their highest during December and January, resulting in annual purchases made during this time being customarily higher,” the statement said.

The company said in January 2018, coal was purchased at $ 100.35 per metric tonnes and in 2019, for $ 91.40 per metric tonne, which was higher than the $ 90.20 per metric tonne in January 2021.

(LIN)