Vitol enters into off-take agreement with Ikwezi
Vitol will purchase a total of 3.96 Mt of coal from Ikwezi at a combination of fixed and API4 Richards Bay linked pricing over a three year period. The 3.96 Mt represents the full, scheduled production of the first stage of the Ntendeka Colliery. The agreement is subject to Ikwezi putting in place a funding facility within a three month timeframe to bring its Ntendeka Colliery into production.
Bob Finch, Head of Vitol Coal said: ”Building on our relationship with Ikwezi management, we look forward to this strategic partnership as the Ntendeka Colliery comes online. The agreement underpins the development of this promising resource and reaffirms our commitment to the South African coal mining industry.”
Ikwezi MD David Pile said: “This agreement formalises the support given to us by Vitol and demonstrates their confidence in our projects. The partnership with Vitol provides Ikwezi access to Vitol’s extensive marketing network and repesents an important milestone for Ikwezi as the Ntendeka Colliery is brought into production.”
Ikwezi Mining Ltd is focused on the exploration and development of coal projects in South Africa. Ikwezi has a 70% stake in the Ntendeka Colliery and a 60% interest in the Dundee, Acorn and Assegai projects. The Ntendeka Colliery is located in the KwaZulu-Natal coal fields, has an existing JORC-compliant resource of approximately 221 Mt and is in close proximity to rail and port infrastructure.
For further information from Ikwezi, please contact:
Tel: +27 11 994 8900