ASF Group to supply coal to Shanghai Time Shipping for China export
ASF Group (ASX: AFA) has reported that its wholly owned entity, ASF
Energy Pty Ltd, has entered into an agreement with Shanghai Time
Shipping Co Ltd for the supply of coal for shipment to China.
Shanghai
Time is an associate company of China Huaneng Group Ltd, a large state
owned power generating group. The agreement is for the supply of a trial
shipment of coal (approximately 45,000 tonnes) which is scheduled to
occur in July 2010.
ASF Energy has contracted to supply coal
from Australia and the agreement with Shanghai Time notes that the
intention of the parties is to engage in the long term supply of
Australian coal for use in power generating plants in China.
ASF
Group has an existing relationship with China Huaneng through a
strategic co-operation agreement formed in September 2009 with China
Huaneng Group Hong Kong Ltd, another subsidiary of China Huaneng.
Earlier
this year, the company reported that ASF Energy entered into a coal
supply agreement with Fujian Material (Group) Co Ltd for the export of
coal to China.
Min Yang, ASF Group's chairman said this
agreement "remains in good standing. However, no shipments (and
consequently no revenues) have occurred pursuant to this agreement owing
to a combination of factors."
"Both parties are eager to procure
the shipment once the conditions and the timing are right and both seek
to achieve a long term relationship."
ASF Group shares rose 14%
to 12 cents in trading today.
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