❓ Mr. Johnston questions Synergy's coal sales to Worsley Alumina, specifically regarding volume and profit margin. The Minister confirms discussions and a short-term arrangement due to Worsley's coal supply issues, but declines to disclose pricing details citing commercial sensitivity.
AnsweredQoN 776Legislative Assembly
QuestionView source ↗
SYNERGY — COAL SALES
776. Mr W.J. JOHNSTON to the Minister for
Energy:
I refer to Synergy's
purchase of coal.
(1) Is it true that Synergy is
on-selling coal to Worsley Alumina Pty Ltd?
(2) If yes to (1), what is the
volume of coal sold so far, and what is the future tonnage expected to be sold?
(3) Is Synergy selling this coal at
a margin above its purchase price?
776. Mr W.J. JOHNSTON to the Minister for
Energy:
I refer to Synergy's
purchase of coal.
(1) Is it true that Synergy is
on-selling coal to Worsley Alumina Pty Ltd?
(2) If yes to (1), what is the
volume of coal sold so far, and what is the future tonnage expected to be sold?
(3) Is Synergy selling this coal at
a margin above its purchase price?
AnswerView source ↗
(1)–(3) Synergy
is a public trading enterprise and has issues with contracts that I am not
fully across at times, but I know and can confirm that Synergy is in discussion
with Worsley to sell coal to it on a very short-term basis. As to whether it is
above its cost or not, it is above its purchase price, but it has costs
associated with it, and it is really a standby arrangement because, as the
member should know, there have been some serious problems in the delivery of
coal to Worsley by its coal provider, which is Lanco, or Griffin Coal. It is in
need of the coal, and it has approached Synergy—and, I imagine, other
players in the coalfield—on a commercial basis, and Synergy has offered
it a price that I understand it is willing to take. I am not going to disclose
the price because that is a commercial arrangement on a competitive basis, but
I will in due time give the member an indication of the volumes of coal
expected over a duration of time, but it is a short-term arrangement. The
volume of coal will vary according to the demand of Worsley.
is a public trading enterprise and has issues with contracts that I am not
fully across at times, but I know and can confirm that Synergy is in discussion
with Worsley to sell coal to it on a very short-term basis. As to whether it is
above its cost or not, it is above its purchase price, but it has costs
associated with it, and it is really a standby arrangement because, as the
member should know, there have been some serious problems in the delivery of
coal to Worsley by its coal provider, which is Lanco, or Griffin Coal. It is in
need of the coal, and it has approached Synergy—and, I imagine, other
players in the coalfield—on a commercial basis, and Synergy has offered
it a price that I understand it is willing to take. I am not going to disclose
the price because that is a commercial arrangement on a competitive basis, but
I will in due time give the member an indication of the volumes of coal
expected over a duration of time, but it is a short-term arrangement. The
volume of coal will vary according to the demand of Worsley.
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