Killara Resources, an Australian miner, has sold its maiden barge of coal from its Borneo Emas Hitam (BEH) concession located in East Kalimantan, Indonesia to Glencore International, as part of its transition from coal explorer to producer.
The company has sold 4500 tons of coal to Glencore at a price of A$54.84 (US$50.99) per ton, earning the company about A$246,000 ($ 228,690.16).
Earlier in December 2013 activities report, the company had revealed its plan to undertake the first sale in the March quarter, however, the sale closed in April 2014 due to production delays with coal production being less than expected.
Killara managing director Robert Kipp said that although disappointed with the temporary delay in production, the company is delighted with the maiden sale of coal.
The company, meanwhile, terminated its agreement with the contractor BerkahCiwi Lestari Kaltim (BCLK), after inconclusive negotiations.
Killara is keenly looking for a contractor to resume its coal production at expected level in the June 2014 quarter.