CIC Brancepeth Coal Ltd, will import Pennsylvania-mined anthracite coal from March 2014 for three years on agreed market based floating prices.
China based CIC Brancepeth Coal ltd (CIC Coal) has signed coal sale agreement with a leading Anthracite coal supplier Atlantic Coal. CIC Coal and Atlantic Coal also signed joint venture agreement, where Atlantic coal will provide its expertise of mining and processing to CIC Coal. And CIC Coal will purchase material which is mined or processed by Atlantic Coal.
CIC-Coal and Atlantic Coal’s Sale Agreement
Under the coal sale agreement Atlantic Coal will sell a minimum of 100,000 MT per year to CIC-Coal (with a minimum of 20,000 MT per quarter). The coal sale agreement provides price per tonne which is adjustable subject to market conditions. In addition, there are certain specification provisions in relation to the coal to be sold pursuant to the coal sale agreement.
Under the terms of the coal sale agreement Atlantic Coal is responsible for all shipment costs up to the point of delivery to CIC-Coal in Tianjin, China (including all duties, tariffs, taxes and other charges that may be levied).
The coal sale agreement will commence no later than 31 March 2014 and will last for an initial period of three years following which the agreement provides a mechanism for its extension. CIC-Coal and its subsidiary, Chinese coal group King Harmony Ltd will purchase Atlantic Coal’s anthracite in the form of the off-take agreement.
“While we currently have no immediate plans to enter the Chinese coal mining industry, the joint venture with CIC-Coal, with its interests in Chinese coal operations, also brings new opportunities to utilize our coal mining and processing expertise to develop new coal mining projects in China in the future.
Our expansion plans in Pennsylvania are, in part, dependent on developing export markets and we see China as being one of the main targets with anthracite imports already having risen over 11% in the first five months of this year.“
– Mr. Steve Best (Managing Director of Atlantic Coal)
– Sourced
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