Excel secures two major contracts

EXCEL Coal today assured increased production at its Wambo mine by securing two major export contracts covering 4.8 million tonnes with Taiwan Power Company and Cargill International SA.
Excel secures two major contracts Excel secures two major contracts Excel secures two major contracts Excel secures two major contracts Excel secures two major contracts

Courtesy Wambo Coal.

Angie Tomlinson

Excel’s Wambo mine in New South Wales’ Hunter Valley will supply Taipower with 3Mt of coal at 500,000 tonnes per year for 6 years starting January 1, 2006. The coal will be exported via Newcastle Port.

Excel also entered into a contract with international trading group Cargill to supply 1.8Mt of Excel blend coal over 3 years, with 300,000t to be delivered in 2006, 600,000t in 2007 and 900,000t in 2008.

Excel said the delivery schedule had been specifically tailored to fit with the planned mine expansions at Wambo.

This coal will be principally supplied from the Wambo mine and shipped via Newcastle Port, but can also be supplemented by production from Excel’s other mines in New South Wales.

As part of the contract Cargill has already provided a partial prepayment of $US40 million.

“These two new major contracts with Taipower and Cargill, when combined with existing, longstanding contracts with major Japanese utilities, provide Excel with important commitments to support Wambo’s expanded production profile,” Excel said.

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