German firm secures Indonesian coal deals

HMS Bergbau AG, a Berlin-based international coal trader reported recently that it has signed two long-term exclusive marketing agreements with high CV coal producers in Indonesia.

In the first cooperation agreement, which was concluded with Bencoolen Coal Pte LTD., Singapore, represented by Patrick Alexander, the company agreed to purchase 1,000,000 tonnes. The first 50,000 tonnes are scheduled for delivery in August 2011. HMS Bergbau plans to market the high calorific value coal in the Asian region.

In addition to the agreed delivery of 1,000,000 tonnes, HMS Bergbau secured exclusive access to further 3,000,000 tonnes of coal, the entire output of the coal mine currently being developed in Sumatra, by means of a first right of refusal purchase option.

The company also entered into a marketing agreement with an Indonesian coal mine operator in East Kalimantan. Plans are to sell the agreed quantity on the Asian market as from August 2011. Further details are subject to a non-disclosure agreement.

?We have secured access to far more than 1 million tonnes of coal in Indonesia with these two marketing agreements. In the medium term, this will increase to a figure in excess of 4 million tonnes. This reconfirms the sustainability of our implemented strategy regarding the increase of our activities in the coal core market Asia. At the same time, we not only hope to expand our existing business relationships with these agreements but also generate positive impulses into entering marketing agreements with new coal producers. Our medium-term goal is to continuously expand the activities of our subsidiaries and representative offices in Singapore, Indonesia, Pakistan and India,? commented Heinz Schernikau, CEO of HMS Bergbau.(robert)