Troubled miner cancels coal supply contract with Oswal
Saturday, May 14 2011 - 02:14 AM WIB
GBT said in statement it had given the down payment worth US$20 million back to Oswal. The contract was called off as GTB was unable to optimize its coal drying machine in the company?s coal mine in Bunyu Island, East Kalimantan.
In July 2010, the company said that Oswal had transferred $20 million in down payment of a 10-year contract.
Under the contract, GTB would supply 1 million tonnes of coal from October 2009 to December 2011, 2 million tonnes in 2012 and 2.5 million tonnes per annum for the rest of the contract?s life.
GTB is unable to sell its coal due to its high moisture level of 55 percent. The company is using a drier to reduce the moisture content, but the effort did not help much..
Despite, the cancellation, GTB has bagged a two-year coal supply contract with other new buyers Briskon Holdings Ltd, which has given $9 million in down payment to GTB.
The company also reported that it did not sell coal during the first quarter of this year.
In December 2010, the company?s commissioner Pardeep Dhir said the company hoped it would be able to produce between 1.5 million to 2 million tonnes in 2011 to meet sales commitment to overseas and domestic buyers. (denny)