Coal news and updates

South East Asia Resources completes coal offtake deal

South East Asia Resources Limited completed an offtake coal agreement through its wholly owned subsidiary Singapore based South East Asia Energy Resources Pte Ltd, from PT PAR semi soft coking coal mine in East Kalimantan, Indonesia. The Sale Purchase Agreement for the coal is with Vietnam Coke producer CoalMiDanka Limited which is part of the energy group Ancom. The coal is being supplied under a long term agreement to the newly commissioned Viet Trung Coke Plant on North Vietnam.
SEAER PTE have secured a letter of credit facility for US$2.4m for the first shipment of 20,000 tonnes of the initial 120,000 tonnes which has been facilitated through the Commonwealth Bank of Australia with total initial contract revenue of US$14.4m.
PT PAR coking coal mine is located near Balikpapan in East Kalimantan and has been under development to production by SEAER. The coal is provided from a multi seam truck and excavator operations providing both semi soft coking coal and additional high-grade thermal coal. The coal is trucked by internal haul road some 36 kms to the barge loading port of Telen where it is processed and loaded onto barges for 30 km transshipment to anchorage of Adang Bay. The coal will then be loaded onto the Vietnamese chartered ships using gear and grab for direct shipment via South China Sea to the Port of Cai Lan, Quang Ninh Province North Vietnam. The supply contract is on an FOB ship basis only.
The production is being undertaken by mining contractor Debbia Mining under the mine and project management of United Mining with Indonesian and Australian site management. The first shipment of coal is scheduled to occur on or around 13 October 2013, with proposed monthly shipments thereafter.
ENDS
About South East Asia Resources Limited

South East Asia Resources is a resources focused resource exploration company listed on the Australian Securities Exchange (ASX code: SXI) and Frankfurt Stock Exchange, with a vision to find, prove and extract value from world class resource projects in South East Asia. The Company is building a resources portfolio with its cornerstone project Malala Molybdenum Project in the Toli Toli Province in North Sulawesi, Indonesia with coal interests in the East Kalimantan, Indonesia and Tasmania Australia.

Source: www.4-traders.com