Under the terms of the agreement, Atlantic Coal will provide coal mining and processing expertise to CIC-Coal and in return the Chinese firm will buy Atlantic Coal’s mined and/or processed.
A minimum of 100,000 tons of coal per year will be sold to CIC-Coal with a minimum of 20,000 tons per quarter while the price per ton adjustable subject to market conditions.
The JV deal, which will start no later than 31 March 2014, will initially run for three year period and can be extended followed by mutual agreement.
Atlantic Coal managing director Steve Best said CIC-Coal and its subsidiary King Harmony will acquire Atlantic Coal’s anthracite in the form of the off-take agreement.
"While we currently have no immediate plans to enter the Chinese coal mining industry, the joint venture with CIC-Coal, with its interests in Chinese coal operations, also brings new opportunities to utilise our coal mining and processing expertise to develop new coal mining projects in China in the future," Best added.
Atlantic Coal will also be responsible for all shipment costs up to the point of delivery to CIC-Coal in Tianjin, China.
