SYDNEY (Yosefardi) – Killara Resources has entered into a coal sale agreement with off-taker Coal Operation & Assets Pte Ltd (COPA) for 100% of the coal output from its PT Borneo Emas Hitam project in East Kalimantan, Indonesia.
Killara to receive an advance coal sale deposit of US$500,000 payable within 18 days of signing the agreement. Price of coal sales will be locked in for a period of twelve months and then linked to market prices.
COPA has entered into agreements to supply a minimum of 1.4 million MT to a group of Chinese power plants within the next year. It is anticipated that the coal from Borneo Emas Hitam project will be blended and used within the Chinese power plant industry.