UPDATE 1-Taipower awards four coal cargoes to Adaro

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PERTH, July 21 (Reuters) - Taiwan's state-owned Taipower has awarded four sub-bituminous coal cargoes to Indonesia's Adaro (ADRO.JK: Quote, Profile, Research, Stock Buzz), out of the 17 cargoes it was seeking in two tenders, a producer who offered coal into the tenders said on Monday.

The source said Adaro won part of the first tender and would supply 280,000 tonnes of coal, or four panamax shipments, out of a total 630,000 tonnes, or 9 shipments, sought by Taipower. Delivery would be between late September and December.

The second tender, which called for 560,000 tonnes, or 8 panamax shipments, of coal for delivery between October this year and February 2009, was cancelled because all the offers received were above Taipower's budget, the source said.

The source said Taipower's ceiling price was about $165 a tonne on a weighted evaluated cost and freight (C&F) basis.

The tender that was cancelled had drawn ten companies offering a total of 25 cargoes into the proposal [ID:SYD295217]. Traders said Taipower was likely to negotiate with bidders for a lower price and may award some cargoes later in the week.

The two tenders, issued on July 4, sought a total of 1.19 million tonnes of thermal coal with minimum calorific value of 5,000 kcal/kg gross as received (GAR). (Reporting by Fayen Wong)