Australia-based Atrum Coal NL (ASX: ATU) (OTCMKTS: ATRCF) said March 17 that it has signed a non-binding Memorandum of Understanding (MOU) to negotiate a binding Sales Agency Agreement (SAA) and for offtake with one of Japan’s top three steel producing conglomerates and a significant importer and consumer of high grade and ultra high grade anthracite.
It didn’t identify this company. The MOU covers a range of high value products planned to be produced from anthracite from its planned Groundhog coal mine in British Columbia, including: lump coke replacement; coke replacement for use in sintering iron ore; blast furnace injection coal; recarburisers in electric arc furnaces; charge carbon; and filtration media.
MOU terms include negotiation of exclusive rights to certain customers and jurisdictions, premium product pricing commensurate with high value anthracite applications, a minimum 20-year term and an agreement to work towards a binding SAA.
Atrum Executive Chairman James Chisholm said: “We continue to build strong relationships with tier one counterparties in Japan where we intend to deliver a large proportion of our high grade and ultra-high grade anthracite.”
Atrum Coal NL had announced Feb. 26 that it has signed non-binding MOUs for offtake with Japanese counterparties including some of that country’s largest corporate conglomerates for anthracite produced from the Groundhog North Mining Complex located in British Columbia, Canada. These are non-binding MOUs to negotiate binding Sales Agency Agreements for anthracite. The MOUs are a key step in executing a minority equity sell-down in the Groundhog North Mining Complex to fund development of the first mine in the Groundhog Coalfield.
The Groundhog Anthracite Project is located in the Groundhog Coalfield in northwestern British Columbia, Canada. Groundhog is prospective for high grade and ultra-high grade anthracite suitable for application in the steel and ferro-alloy industries as well as a range of specialist applications. It is located in close proximity to key mining infrastructure including rail, port, road and power facilities. The company has secured 3 million tonnes per year of port capacity at Stewart Bulk Terminals (150 kilometers southwest of the project) on non-take-or-pay terms, and has a further 5 million tonnes per year of capacity under an MOU with Stewart World Port.