In yet another indication of rising coal prices, Australian producers with
term contracts in Japan commencing deliveries in October recently asked their
Japanese customers for a Newcastle coal contract price of $77 to $78/mt FOB, a
source in Tokyo said.

The new prices being sought are a $9 to $10/mt leap from the reported $68/mt
FOB settlement in September of Peabody with its Japanese customers for October
2007 - September 2008 term contracts for Newcastle coal, the source said.

"The market has changed a lot since the Peabody settlement," the Japanese
source said.