JOHANNESBURG (miningweekly.com) – Coal of Africa Limited (CoAL) signed a memorandum of understanding (MoU) with energy trader Vitol Group on Monday, appointing it as the company’s exclusive marketing agent for its export thermal and coking coal for a period of eight years.
The MoU excluded coal produced at CoAL’s Limpopo-based Makhado operation, where the marketing period is five years from production, as well as all coal subject to current agreements or potential coal offtake contracts between CoAL and its strategic equity partners.
CoAL CEO John Wallington said the MoU would formalise its strategic relationship with Vitol and enable the company to access global export markets for its coking and thermal coal products as its Limpopo-based Vele and Makhado projects were brought on line.
“Our relationship with Vitol will assist CoAL with mitigating any take-or-pay obligations at the TCM export terminal, in Maputo, as we develop both Vele and Makhado and begin exporting,” he stated.
In addition, CoAL reached an agreement with freight specialist Grindrod, which stipulated that, while CoAL’s option to take up capacity for any Phase 4 expansion at TCM remained intact, CoAL was no longer obliged to fund its own share of the capital for the Phase 4 expansion. 