The Jembayan mine produces two types of coal Prangat and JMBboth known for their consistency in quality. The agreed free-on-board (FOB) price for JMB and Prangat coal for each delivery will be based on the public index floating price. Delivery will be evenly spread from 1 April 2010 to 31 March 2015.
Richard Ong, CEO of Straits Asia, said: We are very pleased to have secured a long-term contract from an established customer such as Adani Group. This is an important step forward in securing long-term buyers, as we ramp up production at Jembayan mine and a testimony to the continued demand for quality coal and the willingness of customers to secure long-term supply from Straits Asia.
Straits Asias Jembayam facility was hit by conveyor failure in October last. The issue was sorted out by the managements timely intervention.
Adani Group is one of the largest business houses in India with interests in trading, infrastructure, mining, power generation, edible oil, logistics and agri logistics. It is the largest coal trader in the country and expects to trade in excess of 26 million tonne during 2010.
Meanwhile, Straits Asia has sold 100% share capital in Straits Asia Engineering Pte Ltd (SAE) to a consortium, including the management team of SAE and Richard Ong, for an aggregate purchase price of $4 million.