Celsius Coal has signed a non-binding MoU with two potential Chinese off-take customers, Xinjiang Bayi Iron and Steel Group, and China Minmetals, to facilitate trial shipment of coal for metallurgical testing.
The MoU aims to establish a working relationship between the companies to conduct preliminary investigations for the export, testing and supply of metallurgical coal from Celsius’ projects in the Kyrgyz Republic.
Upon signing the agreement, the delivery of the trial shipments will begin no earlier than Q2 2014 and will expire on 31 December 2014.
Alexander Molyneux, Celsius Coal executive chairman, said the two Chinese companies were top-tier potential customers for Celsius’ coal from the Uzgen Basin metallurgical coal project.
“The execution of this agreement demonstrates the strong Chinese customer interest in our metallurgical coal,” Molyneux added. “Bayi Steel is the major end-user for metallurgical coal in Xinjiang and China Minmetals is a major importer and distributor of steel supply chain commodities to smaller end-users.”
The MoU scope also include the potential for long term supply and purchase arrangements of an estimated 500,000 tpa of metallurgical coal from 2015 – 2019 to be supplied by Celsius Coal.
Additionally, the coal supplied from Celsius Coal's Kyrgyz Republic coal properties will be shared at a to-be-agreed-upon allocation between Bayi Steel and China Minmetals.
Edited from various sources by Sam Dodson
Read the article online at: https://www.worldcoal.com/coal/05032014/chinese_customers_sign_mou_with_celsius_coal_588/