Waratah seeks to purchase coal from RI miner
Tuesday, July 21 2015 - 02:00 AM WIB
ASX-listed Waratah Resources Limited said that it has entered into a non-binding letter of intent with an Indonesian coal miner to enable Waratah and its joint venture entity, Ausmal Synergy, to purchase thermal coal.
The company said in a statement Tuesday that the letter of intent includes specifications for the coal to be supplied, details pertaining to the delivery of the coal and other standard purchase terms.
It added that the transaction contemplated by the letter is conditional upon Ausmal Synergy finalizing its funding package which will allow the joint venture company to proceed with the finalization of a binding sales contract.
The terms of the letter of intent cover shipments of at least 50,000-100,000 tons of thermal coal per month with a total quantity of 1,000,000-3,000,000 metric tons to be supplied over the life of the proposed contract. The coal will be delivered free on board by barge to the mother vessel from the mine site. There will be a trial shipment of 60,000 metric tons to be undertaken as soon as possible. Pricing is competitive allowing the company to establish a profitable trial shipment.
The company did not disclose the identity of the Indonesian coal supplier.
Editing by Reiner Simanjuntak