Origin Energy : offers Myuna end-of-life coal supply agreement

About this update from Origin Energy Limited

An Origin spokesperson said: "Origin confirms it has offered a new three-year contract for the supply of coal from Centennial Coal's Myuna Colliery, on terms consistent with the existing agreement. This offer aligns the Myuna coal supply agreement to the scheduled retirement of Eraring Power Station, providing Centennial additional time to plan for appropriate support for its workers. "Origin has continued to engage openly, constructively and in good faith with Centennial. "We have now tabled two offers this week, with our latest proposal responding directly to Centennial's request for an end-of-life agreement. "Our offer is on consistent terms to today, as we cannot meet Centennial's elevated pricing demand which is forecast to be around $50 million per year above market levels. Over three years, we forecast this is ~$150 million above the cost of coal from other suppliers. "The cost of operating Myuna is a matter for Centennial and its parent company, Banpu, a company of substantial size and profitability. Origin and NSW households and businesses cannot be expected to wear those costs. "Our latest offer shows we're committed to working constructively towards an agreement that supports local jobs. We now need Centennial to respond genuinely with a realistic proposal so we can reach a fair outcome for everyone. "Workers and the broader community deserve greater transparency from Centennial Coal regarding how it will support them through the full implementation of the Energy Industry Jobs Plan, should the Net Zero Economy Authority recommend it be required."

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