Monday, 31 Oct 2011
Victory West Metals has provided an update on its agreement with South East Asia Energy Resources Pte Ltd to acquire nine coking and thermal coal concessions in Indonesia.
The company announced on September 9 that it had signed a Heads of Agreement to acquire 100% of SEAE which is a special purpose company registered in Singapore that has the rights to an 85% interest in the BEK Coal Project in East Kalimantan.
Victory West has reported that SEAE has reached an understanding with United Mining Group to supply Indonesian thermal coal to Vietnam National Coal Mineral Industries Group once those parties have negotiated and entered into binding agreements.
State owned Vinacomin is responsible for sourcing energy supply for several state owned coal fired power plants in Vietnam. Vinacomin operates the Tan Rai Bauxite Project and has entered into a non binding Memorandum of Understanding with United Mining Group. SEAE is part of the United Mining Group.
The non binding MOU is fully transferrable to SEAE Resources and provides all such coal supply and off take rights to SEAE Resources, starting in the second quarter of 2012 and onwards. An initial supply order of 50,000 tons per month has been agreed with the supply demand expected to reach 250,000 tons per month once the Tan Rai project is operating at full capacity.
The initial contract term is three years and the price is the full market indexed price for export thermal coal.
SEAE anticipates entering into binding agreements with Vinacomin upon completion of mining planning and production scheduling to meet SEAE Resources production allocated capabilities.
The proposed acquisition of SEAE is subject to specified conditions including legal and technical due diligence, shareholder approval and Australian regulatory approvals.
(sourced from ProActiveInvestors)
Victory West Metals has provided an update on its agreement with South East Asia Energy Resources Pte Ltd to acquire nine coking and thermal coal concessions in Indonesia.
The company announced on September 9 that it had signed a Heads of Agreement to acquire 100% of SEAE which is a special purpose company registered in Singapore that has the rights to an 85% interest in the BEK Coal Project in East Kalimantan.
Victory West has reported that SEAE has reached an understanding with United Mining Group to supply Indonesian thermal coal to Vietnam National Coal Mineral Industries Group once those parties have negotiated and entered into binding agreements.
State owned Vinacomin is responsible for sourcing energy supply for several state owned coal fired power plants in Vietnam. Vinacomin operates the Tan Rai Bauxite Project and has entered into a non binding Memorandum of Understanding with United Mining Group. SEAE is part of the United Mining Group.
The non binding MOU is fully transferrable to SEAE Resources and provides all such coal supply and off take rights to SEAE Resources, starting in the second quarter of 2012 and onwards. An initial supply order of 50,000 tons per month has been agreed with the supply demand expected to reach 250,000 tons per month once the Tan Rai project is operating at full capacity.
The initial contract term is three years and the price is the full market indexed price for export thermal coal.
SEAE anticipates entering into binding agreements with Vinacomin upon completion of mining planning and production scheduling to meet SEAE Resources production allocated capabilities.
The proposed acquisition of SEAE is subject to specified conditions including legal and technical due diligence, shareholder approval and Australian regulatory approvals.
(sourced from ProActiveInvestors)
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