Fortbridge Media ReleaseRiversdale Mining [ASX: RIV] - Offtake agreement for thermal coal sales from the Benga Coal MineRiversdale Mining (ASX: RIV) has entered into an offtake agreement with Trafigura for thermal coal produced from the Benga Coal Mine in Tete, Mozambique.
The take-or-pay agreement covers all thermal coal produced from the Benga Coal Mine during Stage 1 of the mines development and is valued at over US$200 million at forecast thermal coal prices.
The Benga thermal coal price will be linked to the API 4 Index, the benchmark price reference for coal exported out of South Africas Richards Bay terminal. The agreement includes options to increase offtake tonnages as production ramps-up at Benga.
Riversdale Mining Managing Director Steve Mallyon said that the offtake agreement would be a significant profit driver for the coal mine during the projects first stage of development.
The agreement assists in underwriting the critical first stage of growth and production at Benga and provides us with exposure to the strong fundamentals of the seaborne thermal coal market Mr Mallyon said.
Mr Mallyon said that Riversdale Mining were also pleased to have secured a strong offtake partner in Trafigura, as they are one of the stronger and more experienced global trading companies, with access to in excess of US$30 billion in credit facilities, and with investments in industrial assets around the world of more than US$2.4 billion.
Trafigura is fast becoming a world-class supplier of thermal coal, coking coal and coke products to the global marketplace, and is part of a trading business that includes the worlds third largest independent oil trader and the second largest independent trader in the non-ferrous concentrates market.
For further information, please contact:
Steve Mallyon
Managing Director
Ph: +612 8299 7900
Media: Fortbridge
Bill Kemmery
Ph: +612 9331 0655
Mob: +61 400 122 449
Email: