Australia's Orpheus inks first steam coal supply deal with Indonesian steel firm

Manila (Platts)--21Nov2012/412 am EST/912 GMT


ASX-listed Orpheus Energy, which has a mine in Indonesia, has signed its first coal offtake contract with an Indonesian steel manufacturing company, it said Wednesday.

Orpheus did not identify the offtaker, but said it is based in Banjarmasin in South Kalimantan province.

The steel firm will purchase 8,000-10,000 mt/month of steam coal for one year with following specifications -- 5,300-5,500 kcal/kg gross air dried, 33-35% total moisture air dried, 2-4% ash air dried and sulfur of 0.5% air dried, Orpheus said.

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The coal will be trucked from Orpheus' ADK Kintap mine to the steel company for use in power generation. The price will be based on a benchmark and adjusted quarterly, Orpheus said.

--Cecilia Quiambao, Cecilia_quiambao@platts.com --Edited by Haripriya Banerjee, haripriya_banerjee@platts.com