ASF Group secures space at Port Kembla for coal exports to China
Australia-China resources conduit, ASF Group (ASX: AFA) has followed a coal export sales deal to China - with an announcement it has secured wharf space at Port Kembla, New South Wales.
ASF Energy Pty Limited has secured permanent wharf space at Port Kembla, under a licence agreement with Australian Amalgamated Terminals, to facilitate regular supply of coal to Fujian Materials (Group) Co. Ltd.
Investors may recall, ASF entered into a coal sales agreement with Fujian with for the export sale of coal to China, expected to involve regular monthly shipments of 45,000 tonnes.
In addition, a supply agreement to procure coal supply to meet Fujian’s requirements for monthly shipments from Port Kembla.
Coal will be purchased and sold onto Fujian under a letter of credit presently in place. The continuation of this business is subject to the completion of a trial shipment.
Should it continue as anticipated, ASF said it will lead to a significant increase in revenues for the half year 2010 and it is expected to make a positive contribution to future earnings.
ASF is presently examining other supply sources of Australian East Coast coal and is in negotiations which may lead to securing supply with a view to expanding this coal export business to China.
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