Challenger and SDL sign coal marketing deal
Wednesday, May 2 2012 - 12:55 AM WIB
Canadian firm Challenger Deep Resources Corp. said that it has entered into a Memorandum of Understanding (MOU) with Indonesian coal marketing firm, PT. Surya Dinamika Lestari (SDL) to market domestic thermal coal from Challenger?s Tabang coal Project in East Kalimantan.
Under the terms of the MOU, the parties will work together to develop a marketing plan and negotiate a formal coal sales agreement for the Tabang coal production which is targeted to start in 2013.
SDL, an Indonesian coal trading company that sources coal for domestic Indonesian coal buyers, will seek to secure domestic buyers for coal and will advise Challenger on the best pricing parameters for different production scenarios associated with Tabang.
"This MOU is an important first step in the sales planning component of the overall Tabang Project development plan,? Ranjeet Sundher, the President and CEO of Challenger said in the Statement.
?This relationship is focused primarily on the lower heating value coal component of our project and on domestic consumption, which provides the cornerstone of our initial development plan. Moving to this stage in the process also demonstrates our confidence in this project and in our marketing partner, SDL."
Editing by Adianto P. Simamora