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Domestic prices to be basis for valuing coal for auction
01 Dec 2014
Editorial Team
The model for auctioning 74 cancelled coal blocks will likely consider domestic coal prices as the benchmark to arrive at the net present value of each block based on their potential future earnings. The floor price for each tonne of coal, specific to each block based on energy content and other factors, will be calculated on the basis of this NPV.
The model for auctioning 74 cancelled coal blocks will likely consider domestic coal prices as the benchmark to arrive at the net present value of each block based on their potential future earnings. The floor price for each tonne of coal, specific to each block based on energy content and other factors, will be calculated on the basis of this NPV.