SDL will market and secure buyers for coal from Challenger’s Tabang coal Project in East Kalimantan, and also advise the company on the pricing parameters depending upon the production scenarios.
Challenger president and CEO Ranjeet Sundher said the MOU is an important first step in the sales planning component of the overall Tabang Project development plan.
"This relationship is focused primarily on the lower heating value coal component of our project and on domestic consumption, which provides the cornerstone of our initial development plan," added Sundher.
"Moving to this stage in the process also demonstrates our confidence in this project and in our marketing partner, SDL."
As per the terms of the MOU, both companies will collaborate to develop a marketing strategy and negotiate a sales agreement for the Tabang coal production which is targeted for 2013.
Challenger Deep Resources is an exploration company focused on the Asian coal industry.
