Atlantic Coal, a UK-headquartered coal production and processing company, has announced that it has entered into a joint venture and coal sale agreement with China-based CIC Brancepeth Coal Limited (CIC-Coal), a company founded and currently managed by CIC Capital Ltd.
Under the joint venture agreement Atlantic Coal will provide coal mining and processing expertise to CIC-Coal and, in return, CIC-Coal will purchase coal mined and/or processed by Atlantic Coal. The joint venture agreement runs for an initial three-year period following which it may be extended by mutual agreement.
Under the coal sale agreement, Atlantic Coal will sell a minimum of 100,000 mt per year to CIC-Coal. The agreement also provides a price per metric ton which is adjustable subject to market conditions. Atlantic Coal is responsible for all shipment costs up to the point of delivery to CIC-Coal in Tianjin, China. The coal sale agreement will commence no later than March 31, 2014, and will last for an initial period of three years, following which the agreement provides a mechanism for its extension.
