Jatenergy secures coal supply order from China?s Qingdao
Thursday, December 19 2013 - 04:05 AM WIB
ASX-listed Jatenergy Limited announced Thursday that it has secured a non-revocable purchase order for coal supply from China?s Qingdao Jiahe Rundong Trading Co Ltd.
Under the purchase order, Jatenergy Limited will supply Qingdao with 150,000 - 300,000 tons of coal per month for a three year period, the company said in a statement.
Jatenergy said it has an extensive coal network in Indonesia with offices in Jakarta and Samarinda, which will be used as a base to source coal from the two main Indonesian coal areas Sumatra and Kalimantan.
Jatenergy will act as Qingdao's representative in Australian and Indonesia with a percentage based fee paid to Jatenergy of coal product exported for Qindao. Jatenergy is highly confident that through its network, it will be able to source the maximum 3,600,000 tons per annum required for Qindao's energy requirements in China.
"Jatenergy has the ability to develop its energy and material trading arm. It has been a strategy of the company to utilize its network of suppliers and customers to access product for trade", stated Jatenergy Executive Chairman, Tony Crimmins.
China's coal consumption is forecast to rise by 37.1 percent by 2020, according to the China National Coal Association in a report. In 2012, coal consumption was 3.52 billion tons and the Coal Association expects this to rise to 4.8 billion tons by 2020. As a result, coal continues to be China's dominant energy source currently accounting for more than 60 percent of the country's primary energy resources. Jatenergy plans to capitalize on this growing demand through its partnership with Yihau Indonesia.
Jatenergy has agreed with Indonesia?s PT Prakarsa Corporindo to extend the completion date for the sale of PT Coal Soil Brik by 30 days. This is to allow for local government acknowledgement and approval of the share transfer.
Qingdao is part of the Hejia Group, a high-tech enterprise specialized in the research and development, production and sales of fine chemicals. With a focus on the coal chemical industry, phosphorus chemical industry, salt chemical industry, natural gas chemical industry and mine development, Jatenergy believes that this relationship will be highly beneficial to the company.
Editing by Reiner Simanjuntak