JOHANNESBURG (miningweekly.com) – Aim-listed Edenville Energy has signed a five-year coal offtake agreement with Kenya-based coal and commodities trader Riftcot.
Under the terms of the agreement, Riftcot will buy up to 75% a year of coal produced at Edenville’s Rukwa project, in Tanzania, at a recognised commercial market price.
Riftcot will also receive an arrangement fee for every coal delivery to cover the costs of marketing and the provision of transport.
“We see this is an opportunity to leverage Riftcot's trading platform and experience with Edenville's newly opened project, which will produce washed coal for the East African market.
“By committing 75% of our production we are able to give volume to Riftcot's supply contracts while also having some product in reserve to supply other clients with their individual requirements,” Edenville CEO Rufus Short commented in a statement issued on Tuesday.