Orpheus Energy has executed a binding agreement with the operators of SKJM port in South Kalimantan, Indonesia, to secure exclusive barge loading capacity in excess of 200,000 tpm of coal for a fixed period of 10 years.
Orpheus has executed a commercial binding agreement with a local Indonesian infrastructure investor to fund the transaction. PT Orpheus Energy (PTO), the company’s 100% owned Indonesian subsidiary, has already received the first tranche payment and the funds are to be granted progressively over the next few months as facilities at the SKJM port are upgraded.
With the recently announced agreement, Orpheus Energy now boasts a loading capacity of 3 million tpa.
Barge loading slots
Orpheus has been shipping its coal from the SKJM port throughout 2013 and has been in discussions regarding management of existing port infrastructure. The new agreement means the port will continue to be managed by the current port owner, however Orpheus will be responsible for the allocation of loading slots with barge loading to begin immediately.
The SKJM development enables Orpheus to secure up to 25 million t loading capacity for its coal over the next 10 years. In addition to securing port loading capacity for its own coal, the deal also establishes another revenue stream through loading other producers’ coal.
Significant mining company
Orpheus Executive Chairman, Wayne Mitchell, commented: “We are delighted to announce this highly material infrastructure development which will provide robust cash flows for Orpheus. We have been working on this deal for a significant period of time and the execution of the SKJM Port agreement fundamentally changes our company from a modest producer and seller of coal, to a vertically integrated mining company of significant size”.
Adapted from press release by Katie Woodward
Read the article online at: https://www.worldcoal.com/coal/10102013/major_coal_shipping_contract_for_orpheus_energy_112/