S.E East Asia Energy signs coal supply deal with Vinacomin
Friday, October 28 2011 - 11:02 AM WIB
SEAE has reached an understanding with United Mining Group which contemplates that SEAE will supply Indonesian thermal coal to Vietnam National Coal Mineral Industries Group (Vinacomin) once those parties have negotiated and entered into binding agreements.
Vinacomin is a state owned economic Group of Vietnam, with the responsibility of sourcing energy supply for several state owned coal fired power plants in Vietnam.
Vinacomin operates the Tan Rai Bauxite Project and has entered into a non binding Memorandum of Understanding (MOU) with United Mining Group. The non binding MOU is fully transferrable to SEAE Resources and provides all such coal supply and off take rights to SEAE Resources, starting in the second quarter of 2012 and onwards.
An initial supply order of 50,000 tons per month has been agreed with the supply demand expected to reach 250,000 tons per month once the Tan Rai project is operating at full capacity. The initial contract term is three years and the price is the full market indexed price for export thermal coal.
SEAE Resources anticipates entering into binding agreements with Vinacomin upon completion of mining planning and production scheduling to meet SEAE Resources production allocated capabilities.
Victory West Metals have signed a Heads of Agreement to acquire 100% of South East Asia Energy Resources (SEAE) Pte Ltd. SEAE is part of the United Mining Group.
The proposed acquisition of SEAE is subject to specified conditions including legal and technical due diligence, shareholder approval and Australian regulatory approvals as required which are currently ongoing. (romel)