Monday, 24 Jan 2011
Australia listed producer Continental Coal has completed the first shipment of thermal coal from South Africa's Richards Bay Coal Terminal under its offtake agreement with France's EdF Trading.
Around 33,000 tonnes of thermal coal was loaded from the company's 57,500 tonnes stockpile at RBCT with the vessel now heading towards the Indian port of Mundra.
Final coal pricing for the shipment will be revised upwards based on the prevailing higher export price. When coal is loaded onto railcars at Continental's Anthra rail siding, it will be based upon the average coal price for the month of loading.
In November and December last year, the provisional gross coal price received by Continental for coal railed to RBCT was around USD 105 per tonne.
Continental will benefit because the average coal price for January is USD 127 per tonne and is forecast at over USD 120 per tonne for the remainder of the month.
Mr Don Turvey CEO of Continental Coal said “It is extremely pleasing that the company is so well placed to take advantage of the current high thermal coal prices, as we look to increase thermal coal exports with the development of the Penumbra mine.”
Under the offtake agreement, EdF will secure thermal coal production from Continental's Ferreira, Penumbra and De Wittekrans mines for an initial period of 20 years at a market API4 benchmark price FOB RBCT.
Continental expects first output from its Penumbra underground coal mine in South Africa in the fourth quarter of this year. Penumbra is forecast to produce 500,000 tonnes per year of export coal and 120,000 tonnes per year of a secondary domestic quality thermal coal product.
(Sourced from Argus Media)