ResGen, through its subsidiary, Ledjadja Coal Pty Ltd (LCL), has signed an agreement with Noble Resources International Pte Ltd (Noble) for the supply of additional uncontracted coal to be produced from the Boikarabelo mine (Uncontracted Tonnage Offtake Agreement).
Under the Uncontracted Tonnage Offtake Agreement, LCL has agreed to offer to sell and deliver to Noble, for years one to three, a committed quantity of 800 000 tpy of coal, plus up to 300 000 tpy of coal as advised by LCL to Noble on a quarterly basis. From year four onwards, it has agreed up to 200 000 tpy of coal as advised by LCL to Noble on a quarterly basis.
LCL's obligation to sell and deliver the coal under the Uncontracted Tonnage Offtake Agreement is subject to LCL having sufficient contracted rail and port capacity to deliver the tonnages (taking account of LCL's existing commitments).
As announced on 14 March 2017, as part of the extension of the Facility Agreement dated 3 March 2014 the company agreed to restate the existing domestic offtake and coal marketing agreements it has with Noble and its related bodies corporate, and grant Noble a first right of refusal to purchase any additional uncontracted coal to be produced from the mine.
Read the article online at: https://www.worldcoal.com/coal/12122017/resgen-signs-coal-offtake-agreement/