Execution of Non-Binding MOU - Japanese Steel Conglomerate
Sydney, Mar 17, 2015 AEST (ABN Newswire) - Atrum Coal (
ASX:ATU) (ATRCF:OTCMKTS) Signs an Offtake agreement with a large Japanese steel conglomerate.
Highlights:
- Atrum signs non-binding Memorandum of Understanding (MOU) to negotiate binding Sales Agency Agreement (SAA) and for offtake
- The Confidential Party is one of Japan's top three steel producing conglomerates and a significant importer and consumer of high grade and ultra high grade anthracite
- The MOU covers a range of high value products planned to be produced from Groundhog anthracite including: lump coke replacement; coke replacement for use in sintering iron ore; blast furnace injection coal; 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 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 Executive Chairman, Mr James Chisholm commented on the non-binding MOU stating: "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."
About Atrum Coal Limited
Atrum Coal Limited (ASX:ATU) is a metallurgical coal developer. The Company flagship asset is the 100%-owned Elan Hard Coking Coal Project in southern Alberta, Canada. Elan hosts large-scale, shallow, thick, hard coking coal (HCC) deposits with a current JORC Resource Estimate of 298 Mt (70 Mt Indicated and 228 Mt Inferred). Comprehensive quality testing of Elan South coal on samples from the 2018 exploration program, combined with review of substantial historical testwork data for the broader Elan Project, has confirmed Tier 1 HCC quality.
The initial focus for development is the Elan South area, which is located approximately 13 km from an existing rail line with significant excess capacity, providing direct rail access to export terminals in Vancouver and Prince Rupert. Elan South shares its southern boundary with Riversdale Resources Grassy Mountain Project, which is in the final permitting stage for a 4.5 Mtpa open-cut HCC operation. Around 30km to the west, Teck Resources operates five mines (the Elk Valley complex) producing approximately 25 Mtpa of premium HCC for the seaborne market.
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