Singapore?s Vita secures coal supply contract with Noble Energy

Singapore?s diversified group Vita Holdings Limited announced Monday that it has secured a coal offtake contract with PT Sanga Coal Indonesia (SCI), a wholly-owned subsidiary of global energy trader Noble Energy Inc.

Under the Offtake Contract, Vita?s 51% owned subsidiary, JL Chancellor Pte Ltd (JLC) will initially supply an estimated 20,000 metric tonnes of Indonesia Steam Coal per month to SCI.

The selling price will be based on quality of crushed coal supplied to the coal stockpile area. The coal, which gross calorific value is estimated to be 6,500 kcal and above, will be produced from the three coal mines in East Kalimantan, whereby JLC has exclusive offtake rights over all coal produced.

In June 2006, Vita Holdings acquired a 51% stake in JLC for US$3 million. JLC has previously entered into a joint venture agreement with PT Nusantara Rimbayu Coal to jointly develop, mine and trade in three coal mines, located in Samarinda and Kutai Kartanegara, East Kalimantan. These coal mines have an estimated yield of 5 million metric tonnes of coal collectively. (alex)