The company has agreed to a 14% price cut in the key Japan market for steaming coal down from $95 per ton last year.
Reuters cited a Tohoku spokesman as saying that Tohoku and Xstrata have reached an agreement, but declined to comment further details of the contract.
Delivery of the coal at the new price is scheduled to commence from April, according to The Sydney Morning Herald.
Xstrata last week announced its plans to close its Ravensworth underground coal mine in the Hunter Valley, cutting more than 100 jobs.
