Geo Energy Resources Ltd. said June 27 that Trafigura Pte. Ltd. is the new off-taker for the remaining life of the SDJ coal mine in Indonesia.
Geo Energy and Engelhart CTP (Singapore) Pte. Ltd agreed to terminate their off-take agreement as the latter is streamlining its physical coal trading activities and will be exiting off-take arrangements, including with Geo Energy's subsidiary Geo Coal International Pte Ltd.
Under the agreement, Trafigura will purchase and Geo Coal will sell the entire coal production of SDJ for the remaining life of mine minus its domestic market obligations and subject to a minimum annual commitment of 5 million tonnes of coal from 2020 to 2022.
Trafigura will make a prepayment of US$15 million to Geo Coal for the off-take.