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Monday, 07 December 09
VEDANTA RESOURCES ISSUES TENDER TO IMPORT 2.25 MILLION COAL


COALspot.com (India): Vedanta Resources plc is a London stock exchange listed FTSE 100 diversified metals and mining major with revenues in excess of USD 6.5 billion company issued a tender to import 2.25 Million MT of Steam coal (Bituminous / sub-bituminous) for arrivals between January 2010 and December 2012 on long term basis (750 thousand MTs per annum).

Hindustan Zinc Limited (HZL) & Madras Aluminum Company Limited (MALCO) are the operating companies of Vedanta in Lead, Zinc, Aluminum & Power businesses in India.HZL & MALCO put together operate 440 MW capacity power plants and coming up with another 2X80 MW power plants in Rajasthan, India.

Both the companies invite coal producers to offer for 2.25 Million MT of Steam coal (Bituminous / sub-bituminous) for arrivals between January 2010 and December 2012.

According to tender requirement, HNL will import 0.5 million MT +/- 10% per annum and MALCO will import 0.25 million MT +/- 10% per annum.

Technical Specifications
HNL
GCV-ADB (kcal/kg) 5800-6500 or  GCV-ARB (kcal/kg) > 5200,   Total Moisture (%) < 25,   Ash content (%) < 15,   Sulphur (%) < 1.5%,   HGI 42-55  AFT-IDT (at reducing atmosphere) – Deg C > 1150,   Na2O in ash (%) < 1.0,   K2O in ash (%) < 2.0 4.

HZL is looking for coal from either Indonesia  or South Africa on either FOB or CIF Navlakhi, Indian basis.

MALCO
GCV-ADB (kcal/kg) 6000-6500  or GCV-ARB (kcal/kg) > 5500, Total Moisture < 18 (%), Inherent Moisture (%)  <10, Ash content (%) < 10, Sulphur (%) < 1.0%, HGI 45-47, VM 38-42, AFT-IDT (at reducing atmosphere) – Deg C > 1150  AFT-HT (at reducing atmosphere) – Deg C > 1200  and Size -2mm to be less than 10%.

MALCO is looking for coal from Indonesia on either FOB or CIF Karaikal / Chennai / Tuticorin India Basis.

Other Restrictions:
Only coal producers are invited to submit coal offers and restricted to middleman like agents / traders to  submit the offers as well as for liasioning with the Purchaser. Offers to include the option to convert floating price to fixed price.

NewCastle index as per GlobalCoal ($/MT) and or API4 index as per Argus McCloskey ($/MT) would be used for floating pricing method.

Offer Submission and Validity
Last date of submission of the offer is 21 December’ 2009 and Validity of offer should be until 10th January’ 2010

For more information visit
www.vedantaresources.com.



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