Shenhua Group, China’s top coal miner, has signed term coal supply contracts for 2009 with three small power firms who will pay a little more than 10 percent above 2008 prices, but the country’s top five power generating groups remained locked in talks with suppliers.

China’s annual thermal coal price negotiations are making little headway as miners and power plants stand firm on their positions, but some smaller power generators, unable to resist pressure from coal suppliers, have concluded term agreements, industry officials said on Wednesday.

‘Shenhua has signed deals with Yudean, Zhejiang Electric Power Corporation and China Resources,’ said Liang Dunshi, deputy secretary-general of the China Coal Distribution and Transportation Association said.

Shenhua’s term price for coal with calorific value of 5,500 kcal/kg was less than 500 yuan ($73.04) per tonne in 2008, industry officials said.

A Shenhua spokesman declined to comment.

Spot prices for the same grade have fallen nearly 45 percent from their July peak to 555-570 yuan per tonne at Qinhuangdao, China’s top coal shipping port, while thermal coal price at Newcastle, Australia, a benchmark for Asia, stood at $77.81 per tonne last week.

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