Atrum Coal NL Signs MOU with Specialist Korean Anthracite Trader
29.04.2015 | ABN Newswire
Perth, Australia (ABN Newswire) - In February, Atrum Coal NL (ASX:ATU) announced that it signed offtake MOUs with some of Japan's largest corporate conglomerates. To date, the Company has executed MOUs with competing confidential parties in Japan, including three of the seven "Sogo shosha" (Japanese general trading companies) with combined annual revenues of more than A$230 billion and more than 195,000 employees. The seven "Sogo shosha" in Japan are Mitsui, Sumitomo, Mitsubishi, Toyota, Itochu, Marubeni and Sojitz.HIGHLIGHTS
- Atrum signs non-binding Memorandum of Understanding (MOU) to negotiate binding Sales Agency Agreement (SAA) and for offtake
- The Confidential Party is a specialist anthracite and graphite trader in Korea and a significant importer of ultra-high grade anthracite
- The Confidential Party is strategic in that they own stockyards and processing facilities at major Korean ports including Incheon and Pohang, which will provide Atrum with incountry processing capabilities for customisation of Groundhog Anthracite for high value use
- MOU covers a range of high value products planned to be produced from Groundhog anthracite including: lump coke replacement; recarburisers in electric arc furnaces; charge carbon; filtration media and activated carbon; carbon cathodes, anodes and electrodes; lithium ion battery anodes; electrode paste; synthetic graphite replacement; calcined anthracite; carbon feed for manufacturing of: calcium carbide; silicon; phosphorous; soda; sodium sulphide; plastics and urea
- MOU terms include negotiation of exclusive rights to certain customers in Korea, premium product pricing commensurate with high value anthracite applications, and an agreement to work towards a binding SAA
Executive Chairman, Mr James Chisholm commented on the non-binding MOU stating:
"We are pleased to announce our first MOU in Korea where we are working to become the market leader in high grade and ultra-high grade anthracite supply."
The Company has also signed a non-binding MOU for anthracite offtake with one of the top three steel producers in Japan.
These MOUs with Japanese and Korean counterparties are a key step in facilitating a minority equity sell-down in the Groundhog North Mining Complex.
About Atrum Coal NL:
Atrum Coal NL (ASX:ATU) (OTCMKTS:ATRCF) is an emerging metallurgical coal explorer and developer.
The Company has a substantial coal position in British Columbia which, as a region boasts:
- Abundance of high quality PCI, coking and anthracite coals
- Well developed rail and port infrastructure with excess capacity
- Access to deep sea ports
- Competitive shipping distance to Asia
- Positive government stance on mining
The Company is building a quality portfolio of metallurgical coal assets suited to the Asian export market and the Board of Directors have a strong track record in identifying and developing world class coal assets in Australia and abroad.
Contact:
Atrum Coal NL
James Chisholm, Executive Chairman
M +61 419 256 690
james@atrumcoal.com
Russell Moran, Executive Director
M +61 415 493 993
rmoran@atrumcoal.com
Gino D'Anna, Executive Director
M +61 400 408 878 gino@atrumcoal.com
Nathan Ryan, Investor Relations
M +61 420 582 887
nathan@atrumcoal.com