Signs MOU with Specialist Korean Anthracite Trader
Perth, April 29, 2015 AEST (ABN Newswire) - In February, Atrum Coal NL (
ASX:ATU) announced that it signed offtake MOUs with some of Japan's largest corporate conglomerates. To date, the Company has executed MOUs with competing confidential parties in Japan, including three of the seven "Sogo shosha" (Japanese general trading companies) with combined annual revenues of more than A$230 billion and more than 195,000 employees. The seven "Sogo shosha" in Japan are Mitsui, Sumitomo, Mitsubishi, Toyota, Itochu, Marubeni and Sojitz.
HIGHLIGHTS
- Atrum signs non-binding Memorandum of Understanding (MOU) to negotiate binding Sales Agency Agreement (SAA) and for offtake
- The Confidential Party is a specialist anthracite and graphite trader in Korea and a significant importer of ultra-high grade anthracite
- The Confidential Party is strategic in that they own stockyards and processing facilities at major Korean ports including Incheon and Pohang, which will provide Atrum with incountry processing capabilities for customisation of Groundhog Anthracite for high value use
- MOU covers a range of high value products planned to be produced from Groundhog anthracite including: lump coke replacement; recarburisers in electric arc furnaces; charge carbon; filtration media and activated carbon; carbon cathodes, anodes and electrodes; lithium ion battery anodes; electrode paste; synthetic graphite replacement; calcined anthracite; carbon feed for manufacturing of: calcium carbide; silicon; phosphorous; soda; sodium sulphide; plastics and urea
- MOU terms include negotiation of exclusive rights to certain customers in Korea, premium product pricing commensurate with high value anthracite applications, and an agreement to work towards a binding SAA
Executive Chairman, Mr James Chisholm commented on the non-binding MOU stating:
"We are pleased to announce our first MOU in Korea where we are working to become the market leader in high grade and ultra-high grade anthracite supply."
The Company has also signed a non-binding MOU for anthracite offtake with one of the top three steel producers in Japan.
These MOUs with Japanese and Korean counterparties are a key step in facilitating a minority equity sell-down in the Groundhog North Mining Complex.
About Atrum Coal Limited
Atrum Coal Limited (ASX:ATU) is a metallurgical coal developer. The Company flagship asset is the 100%-owned Elan Hard Coking Coal Project in southern Alberta, Canada. Elan hosts large-scale, shallow, thick, hard coking coal (HCC) deposits with a current JORC Resource Estimate of 298 Mt (70 Mt Indicated and 228 Mt Inferred). Comprehensive quality testing of Elan South coal on samples from the 2018 exploration program, combined with review of substantial historical testwork data for the broader Elan Project, has confirmed Tier 1 HCC quality.
The initial focus for development is the Elan South area, which is located approximately 13 km from an existing rail line with significant excess capacity, providing direct rail access to export terminals in Vancouver and Prince Rupert. Elan South shares its southern boundary with Riversdale Resources Grassy Mountain Project, which is in the final permitting stage for a 4.5 Mtpa open-cut HCC operation. Around 30km to the west, Teck Resources operates five mines (the Elk Valley complex) producing approximately 25 Mtpa of premium HCC for the seaborne market.
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