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Stanmore Coal signs JESA agreement with JOGMEC

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World Coal,


Stanmore Coal Ltd has signed a new Joint Exploration and Support Agreement (JESA) with the Japan Oil, Gas and Metals National Corp. (JOGMEC).

The JESA follows a number of successful deals between the company and JOGMEC over several years including funding for The Range, Clifford and Belview projects. The JESA is subject to approval from the Foreign Investment Review Board.

The JESA provides the Company with AUS$3 million of funding to accelerate exploration, approvals and studies to underpin finalisation of studies for the Isaac Plains East open cut project and the investment decision for Isaac Plains Underground project (the projects). In return, Stanmore will provide JOGMEC with an annual right to tender a portion the metallurgical coal produced at from these projects to end-users in Japan.

The annual right will continue for five to seven years whereby JOGMEC will be reimbursed over time. The annual right is split between product coal produced from each Project and therefore contingent on each project reaching commercial production. The annual right may also fit within volumes shipped to current Japanese end-users.

Read the article online at: https://www.worldcoal.com/exploration-and-development/05042017/stanmore-coal-signs-jesa-agreement-with-jogmec/

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