Paringa Resources announced that it has signed a sales agreement with Big Rivers Electric (BREC) for coal sales from its Poplar Grove Mine, totaling up to 1,400,000 tons of coal from 2019 to 2023.
Image: Paringa signs third coal sales agreement with major utility. Photo: courtesy of dan/FreeDigitalPhotos.net.
The sales agreement with BREC takes Paringa’s total 5-year contracted sales position to 6,800,000 tons, including existing sales agreements with LG&E and KU and OVEC-IKEC.
The Poplar Grove Mine’s direct barge access to the Green and Ohio River systems provides a significant transportation cost advantage over many other coal operations in the region, with BREC’s R.D. Green and D.B. Wilson plants located in very close proximity to Paringa on the Green River.
Under the coal sales agreement, Paringa is contracted to deliver a minimum of 1,280,000 tons and a maximum of 1,400,000 tons of 11,250 btu/lb product from its Poplar Grove Mine over a 5-year period at annual fixed pricing and on a mutually agreeable delivery schedule. Pricing terms are consistent with Paringa’s existing sales contract with LG&E and KU.
Paringa’s Chief Executive Officer, Egan Antill, said: “We are delighted to enter into a coal sales agreement with a high quality, locally owned organisation such as BREC, complementing our existing coal sales agreements with LG&E and KU and OVEC-IKEC. We have expanded our contracted position with three high quality customers to 6.7 million tons, providing clear revenue visibility for a significant portion of our production over the next 5 years to a diversified customer base.”
Source: Company Press Release