- Cokal (CKA) wants to amend its coal marketing deal with International Commodity Trade (ICT) allowing the company to directly acquire coal from the ASX-lister
- Cokal’s subsidiary signed an International Coal Marketing Agreement with ICT in July to promote and finance its Bumi Barito Mineral Coking Coal Project in Indonesia
- Under the amended agreement, ICT will be able to acquire coal directly from the Central Kalimantan-based coal project for the same price as other customers
- Changing the agreement is subject to shareholder approval as ICT’s owner is one of Cokal’s largest shareholders
- Shares in Cokal are trading up 3.4 per cent at 15 cents each
Cokal (CKA) wants to amend its coal marketing deal with International Commodity Trade (ICT) to allow the company to acquire coal directly from the ASX-lister.
Cokal’s 60 per cent owned Indonesian subsidiary, PT Bumi Barito Mineral (BBM), signed an International Coal Marketing Agreement with ICT back in July.
The deal related to the promotion and financing of coal stockpiles at PT Bumi Barito’s wholly owned Bumi Barito Mineral Coking Coal Project in Central Kalimantan.
Under the amended agreement, ICT will be able to acquire coal directly from the project for the same terms as other customers.
The pricing of the coal will be linked to Index Prices for seaborne traded coking coal and adjusted for coal quality and specification.
Changing the agreement is subject to shareholder approval from Cokal investors.
ICT is controlled by a party which also has a large shareholding in Cokal – owning a 19.97 per cent stake in the business.
Shares in Cokal were trading up 3.4 per cent at 15 cents each at 1128am AEDT.