Mayur Resources Ltd. signed a nonbinding letter of intent with Square Resources Pty. Ltd. for the trial export of coal from the Depot Creek project in Papua New Guinea.
Square Resources will facilitate trial cargo coal acceptance testing for Asian power generation users. If successful, Mayur Resources will sign a framework for long-term binding sale and off-take agreements with Square Resources and end users once a full‐scale mining operation is achieved.
The agreement will allow Mayur Resources to introduce coal from Papua New Guinea as a low-ash, low-sulfur alternative for the Asia Pacific market, the company said in an Oct. 16 release.
It is also aligned with Mayur Resources' strategy of providing coal for vertically integrated power production in Papua New Guinea, displacing imports of the more costly and highly polluting diesel and heavy fuel oils, with the excess going to the export market.