Killara announces maiden coal sale to Glencore International AG
Monday, April 28 2014 - 04:15 AM WIB
ASX-listed Killara Resources Limited announced Monday that it has sold its maiden barge of coal from its Borneo Emas Hitam (BEH) concession located in East Kalimantan, to Glencore International AG (Glencore).
?This first sale represents a pivotal moment in the history of Killara as it achieves the significant turning point, with Killara moving from coal explorer to producer,? the company said in a statement.
As disclosed in the December 2013 activities report, overburden removal had commenced and the firm?s board anticipated making its first sale in the March quarter. However, production delays meant that coal output was less than expected and the first sale occurring in April 2014, the company said.
The 4,500 tons of coal sold to Glencore was at a fixed price of US$51.50 per ton which equates to approximately A$54.84 per ton or gross revenues of approximately A$246,000, Killara said.
The production delays experienced with the contractor Berkah Ciwi Lestari Kaltim (BCLK) and disclosed on 27 March 2014 in a separate ASX release had not been resolved to the satisfaction of Killara. This has resulted in the termination of their services. ?The board and management are now seeking an alternative contractor to be engaged and remain optimistic that the production of coal will resume at acceptable levels in the June 2014 quarter,? the statement said.
Since commencing coal production in January 2014, Killara has been approached by various coal buyers for all the coal from this concession and is currently in discussion with relation to long term supply arrangements. This will help underpin revenue for the company, the statement said.
Editing by Reiner Simanjuntak