Johannesburg – Coal of Africa [JSE:CZA] announced on Monday
that it had appointed the Vitol Group‚ through the signing of a memorandum of
understanding (MOU)‚ to handle the miner’s marketing for all its export thermal
and coking coal for the next eight years.
“This MOU not only formalises our strategic relationship
with Vitol but also provides CoAL with access to a global marketing network
that will greatly assist the development of export markets for our coking and
thermal coal products as we bring our Vele and Makhado projects online. In
addition‚ our growing relationship with Vitol will assist CoAL with mitigating
any take or pay obligations at TCM as we develop both Vele and Makhado and
begin exporting‚” said John Wallington‚ CEO of CoAL.
The MOU does not‚ however‚ include the marketing for the
Makhado product where the marketing period is five years from the start of
“We are delighted to have entered into this partnership with
CoAL. It expands our coal trading portfolio and reaffirms our commitment to the
South African coal industry‚ as well as helping to develop the activities of
TCM and underpinning the Phase IV expansion plans‚" said Bob Finch‚ head
of Vitol Coal.
An addition‚ an agreement has also been reached between CoAL
and Grindrod whereby Grindrod has agreed that‚ whilst CoAL’s option to take up
capacity for any Phase 4 Expansion at the TCM export terminal in Maputo remains
intact‚ CoAL is no longer obliged to fund its own share of the capital for the
Phase 4 expansion.
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