Federal bags 1st coal supply contract

SGX-listed firm Federal International (2000) Ltd announced n Wednesday that its subsidiary Alton International Resources Pte Ltd (AIR) has recently signed a one-year coal contract worth US$33 million with Indian trading firm Swastik Coal Corporation Pvt Ltd, to provide 12 shipments of coal with CV of 5,100-5,300Kcal.

Swastik Coal Corporation is the flagship subsidiary of Swastik Group, one of the major players in the coal trading business in Central India Region.

AIR has the right to review its selling price after three months. The first shipment of coal will commence in October 2008, the company said, adding that the contract was the first for the company.

Federal had expanded into the coal mining business in Indonesia in early 2008, following the incorporation of AIR and its wholly-owned subsidiary, PT Alton International Resources (PT AIR) in February this year. PT AIR operates a coal mine in Indonesia under exclusive mining contract and offtake scheme, but the company did not give detail about the mine?s location. (alex)