Straits Asia secures 5-year supply of coal to Adani Group

Singapore Exchange-listed coal mining firm Straits Asia Resources Limited announced on Tuesday it has signed a five-year contract to supply coal from its Jembayan mine in East Kalimantan to the Adani Group of India.

The Jembayan Mine produces 2 types of coal: Prangat and JMB.

Under the terms of the contract which is effective from 1 April 2010, Straits Asia will sell every 12 months, 1.5 million tonnes of JMB coal and 500,000 tonnes of Prangat Coal.

The agreed FOB price for JMB and Prangat coal for each delivery will be based on the public index floating price.

Delivery will be evenly spread from 1 April 2010 to 31 March 2015.

Said Richard Ong, CEO of Straits Asia: ?We are very pleased to have secured a long-term contract from an established customer such as the Adani Group. This is an important step forward in securing long-term buyers as we ramp up production at Jembayan Mine and testimony to the continued demand for quality coal and the willingness of customers to secure long-term supply from Straits Asia.?

Adani Group is one of the largest business houses in India with interests in trading, infrastructure, mining, power generation, edible oil, logistics and agri logistics. It is the largest coal trader in India and expects to trade in excess of 26 million tonnes during 2010. (alex)