The MoU aims to establish a working arrangement between Celsius, Bayi Steel and China Minmetals, to conduct preliminary investigations for the export, testing and supply of coking coal from Celsius’ projects in the Kyrgyz Republic.
Upon signing an agreement, the delivery of the trial shipments will begin no earlier than Q2 2014 and will expire on 31 December 2014.
Celsius Coal executive chairman Alexander Molyneux said Xinjiang Bayi and China Minmetals are top-tier potential customers for Celsius Coal’s Uzgen Basin coking coal project.
"The execution of this agreement demonstrates the strong Chinese customer interest in our coking coal," Molyneux added.
"Bayi Steel is the major end-user for coking coal in Xinjiang and China Minmetals is a major importer and distributor of steel supply chain commodities to smaller end-users."
The MoU scope also include the potential for long term supply and purchase arrangements of an estimated 500,000t of coking coal per annum from 2015 to 2019 to be supplied by Celsius Coal.
Additionally, the coal supplied from Celsius Coal’s Kyrgyz Republic coal properties will be shared at a to-be-agreed-upon allocation between Bayi Steel and China Minmetals.
