Under the strategic alliance agreement, SouthGobi commits to sell at least two million tonnes of coal to Winsway per year, and Winsway will work with SouthGobi to increase the market value of SouthGobi’s Mongolian coal and Winsway will provide priority access to its logistics assets.
Pricing for the coal to be sold under this contract has been agreed to for the first quarter of 2011, and will be determined by mutual agreement in advance of each subsequent quarter.
Coal volumes for delivery will be divided evenly at 800,000 tonnes per quarter.
SouthGobi Resources president and CEO Alexander Molyneux said that the strategic alliance agreement will also increase volumes of SouthGobi’s coal sales and add value over time, building on of Winsway’s demonstrated capability to deliver Mongolian coal to consumers in China.
