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Wednesday, 21 November 12
ORPHEUS ENERGY SECURES FIRST COAL OFF TAKE CONTRACT


COALspot.com - Orpheus Energy Limited (ASX:OEG) has announced that it has signed a coal sales contract with an Indonesian steel manufacturing company, located in Banjarmasin, South Kalimantan. 

- Coal sales purchase agreement signed to supply coal to an Indonesian steel manufacturing group
- 8,000 – 10,000 tonnes per month of ADK coal to be delivered to the buyer
- Benchmark pricing with quarterly reviews

According to company’s press note, under the terms of this initial agreement, the off taker will purchase thermal coal from Orpheus Energy’s ADK Kintap mine f or one year, commencing December 2012, at the rate of 8,000 – 10,000 tonnes per month.  The coal will be transported by truck to the steel operation, approximately 140km from ADK, for use in power generation at the facility.

The coal will be sold at benchmark pricing, with quarterly adjustments, and the coal specification requires the following characteristics: Calorific Value 5500-5300 Kcal/Kg (ADB), 33-35% Total Moisture (ADB), 2-4% Ash (ADB), and 0.5% Sulphur (ADB).

Executive Chairman Wayne Mitchell said: “ We recently told shareholders that we were in negotiations regarding longer term contracts for our ADK coal and we are now happy to announce our first off take agreement. The benchmark pricing outcome represents a vote of confidence in the company’s ability to deliver,  and positions us t o sell increasing quantities of coal as our  mines ’ capacity grows.  This is an important milestone in our plans to establish Orpheus Energy as a significant supplier of coal to both export and Indonesian domestic markets”, a note from company said.



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