Manila (Platts)--23Jan2013/853 am EST/1353 GMT
South African coal exploration and development firm Ikwezi Mining said Wednesday it had signed an off-take agreement with commodities trader Vitol for 3.96 million mt of steam coal over three years. Ikwezi, which is listed on the Australian exchange, said the 3.96 million mt volume represents the full scheduled production of its Ntendeka coal mine located in the KwaZulu-Natal coal fields in South Africa in which Ikwezi has a 70% equity stake. Under the agreement, Vitol will purchase the volume at a combination of fixed and API4 Richards Bay-linked pricing over a three-year period. Ikwezi said the off-take agreement was subject to its putting in place a funding facility within three months to bring the Ntendeka coal mine into production. Article continues below...Request a free trial of: International Coal ReportInternational Coal Report and its daily companion, Coal Trader International, deliver expert and respected price assessments for coal trading in the Atlantic and Pacific markets including price assessments for European CIF ARA, FOB Newcastle, Richards Bay and Indonesia.
South African coal exploration and development firm Ikwezi Mining said Wednesday it had signed an off-take agreement with commodities trader Vitol for 3.96 million mt of steam coal over three years. Ikwezi, which is listed on the Australian exchange, said the 3.96 million mt volume represents the full scheduled production of its Ntendeka coal mine located in the KwaZulu-Natal coal fields in South Africa in which Ikwezi has a 70% equity stake. Under the agreement, Vitol will purchase the volume at a combination of fixed and API4 Richards Bay-linked pricing over a three-year period. Ikwezi said the off-take agreement was subject to its putting in place a funding facility within three months to bring the Ntendeka coal mine into production.
Article continues below...
International Coal Report and its daily companion, Coal Trader International, deliver expert and respected price assessments for coal trading in the Atlantic and Pacific markets including price assessments for European CIF ARA, FOB Newcastle, Richards Bay and Indonesia.
Ikwezi managing director David Pile said in a statement submitted to the Australian Securities Exchange that the agreement with Vitol provided his company access to the latter's "extensive marketing network." Earlier this month, Vitol also signed a memorandum of agreement with South African firm Coal of Africa whereby Vitol has been appointed as an exclusive coal marketing agent in the overseas market.--Cecilia Quiambao, Cecilia_quiambao@platts.com--Edited by Haripriya Banerjee, haripriya_banerjee@platts.com
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