Agritrade, Senamas sign new coal supply deal

By Ruli Setiawan

Hong Kong-listed Agritrade Resources Limited said it has signed a new three-year coal supply and purchase agreement with its non-wholly owned coal mining subsidiary PT Senamas Energindo Mineral (PT SEM)

Agritrade said in a statement Tuesday that new agreement was signed on March 31. It is a renewal of a June 2012 coal supply and purchase agreement, which is set to expire on June 3, 2015.

Under the new agreement effective April 1, Senamas, which has a 2,000-ha coal mine in Central Kalimantan, will supply 700,000 tons of coal per annum for each of the years ending March 2016, March 2017 and March 2018.

Pursuant to the coal supply agreement, PT SEM agreed to sell and Agritrade International agreed to purchase the specified volume of coal with the following specifications:

Payment Terms: Payments should be settled by letter of credit with the terms of payment at site based on FOB (Mother Vessel) basis or other payment methods accepted by PT SEM.

Long Stop Date: If the passing of relevant resolution(s) approving the coal Supply agreement and the transactions contemplated thereunder by the Independent Shareholders has not been fulfilled on or before June 12, 2015 (or such later date as may be agreed in writing between the parties), the coal supply agreement shall cease and determine and neither party shall have any obligations and liabilities towards each other thereunder save for any antecedent breaches of the terms thereof.

PT SEM, a company incorporated in Indonesia with limited liability and an indirect non-wholly owned subsidiary of the Agritrade. As at the date of this announcement, the Agritrade effectively owns 57 percent equity interests in PT SEM.

Under the previous June 2012 coal supply agreement, PT SEM agreed to supply 400,000 tons of coal annually to Agritrade for a period from June 4, 2012 to June 3, 2015.

Editing by Reiner Simanjuntak