Atlantic Carbon Group Presentation
Sydney, Aug 15, 2016 AEST (ABN Newswire) - Atrum Coal NL ("Atrum" or the "Company") (
ASX:ATU) (ATRCF:OTCMKTS) is pleased to announce it has commenced discussions with European and Asian parties regarding the supply of up to 100,000t of ACG anthracite. Earlier this month, Atrum announced it had entered into a binding agreement to acquire a 26.68% interest in ACG.
HIGHLIGHTS:
- Atrum in discussions with carbon users regarding samples and shipments of Atlantic Carbon Group PLC (ACG) ultra-high grade anthracite under the Company's 100,000t option sales agreement
- Anthracite pricing is strong with major markets in Europe, Asia and South America remaining under-supplied
- Notice of Meeting has been prepared and subject to ASX approval, the Company will hold an Extraordinary General Meeting (EGM) in September to vote on the acquisition of a 26.68% stake in ACG
- Updated presentation including ACG information provides additional information to shareholders prior the EGM
Export markets remain under-supplied for ultra-high grade anthracite and the Company is arranging for ACG product samples to be sent to customers in Asia, Europe and Brazil. Although some major users have already expressed interest in the entire 100,000t option, the Company is contemplating supply of select parcels to numerous customers in order to develop a commercial relationship with Atrum.
Peter Doyle, VP Business Development and Marketing commented: "Interest in Atrum continues to strengthen as we prepare to enter the market with ultra-high grade anthracite for sale. We are currently opening discussions with multiple parties across Europe, Asia and South America in relation to the 100,000t option, with the aim of strengthening long-term ties with Atrum."
Subject to specified pricing hurdles, ACG will, on request from Atrum, make available up to 100,000t of anthracite in aggregate at its site in Pennsylvania for Atrum to collect and arrange transport to its customers. Several anthracite mines are expected to close in Europe over the next 18 months due to depletion of reserves, and removal of government subsidies, and the Company expects the global anthracite market to tighten even further.
In addition to the more typical Electric Arc Furnace, metals production and filtration media users, the Company has also been investigating the growing use of anthracite in sugar beet production and chemical manufacturing. Anthracite is the preferred type of fuel for sugar beet refining due to its low sulphur and nitrogen, high heating value and low emissions.
Over the coming weeks leading up to the Extraordinary General Meeting the Company will continue to investigate high value carbon markets, with the aim of securing multiple customers. An updated presentation featuring information on Atlantic Carbon Group has been prepared as an introduction to the EGM and is attached to this release. The Company will provide more information on ACG in the coming weeks.
To view the presentation, please visit:
http://abnnewswire.net/lnk/U7FXSMV1
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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