World coal prices rise to record high

Coal prices hit an all-time high yesterday, with Xstrata persuading Chugoku Electric of Japan to pay almost $130 (£80) a tonne for coal sourced from the miner over the next 12 months – 30 per cent more than the contract was worth last year.

The rising price reflects the boom in demand for energy resources in China and India, as well as supply problems caused by Australia's floods.