Celsius, which signed the MoU with Xinjiang Bayi Iron and Steel and China Minmetals, will establish a working arrangement among them to undertake preliminary investigations for the export, testing and supply of coking coal from Celsius’ projects in the Kyrgyz Republic.
The delivery of the trial shipments is expected occur after the second quarter of 2014, and will expire on 31 December 2014.
Celsius said the primary goal of the MoU is to facilitate the trial shipment of small parcels of coking coal, totalling up to 5,000 tonnes, for metallurgical testing by the customers, resolution of transport methods and transport routes, and cross border transfer between the Kyrgyz Republic and China.
The MoU’s scope also includes the potential for long-term supply and purchase arrangements of an estimated 500,000t of coking coal per annum from 2015 to 2019 to be supplied by Celsius Coal.
Celsius Coal executive chairman Alexander Molyneux said Xinjiang Bayi and China Minmetals are top-tier potential customers for the company’s Uzgen Basin coking coal project.
"The execution of this agreement demonstrates the strong Chinese customer interest in our coking coal," Molyneux added.
