ARCHIVE

Orpheus nails first offtake deal

INDONESIA-FOCUSED Orpheus Energy has sealed a sales purchase agreement to supply coal to an Indon...

Noel Dyson

Under the terms of the initial agreement, the steelmaker will buy 8000-10,000 tonnes of thermal coal a month from Orpheus’ ADK Kintap mine for a year, starting from December.

The coal will be transported by truck to the steel operation, about 140km (87.5 miles) from ADK for use in power generation at the facility.

Quality specifications for the coal require the product to have a 5500-5300 kilocalorie per kilogram heat value; a 33-35% total moisture content; a 2-4% ash content and 0.5% sulfur content. All of these are on an air-dried basis.

The coal will be sold at benchmark pricing with quarterly adjustments.

Orpheus executive chairman Wayne Mitchell said the company recently told shareholders it was in negotiations regarding long-term contracts for its ADK coal and he was happy to be able to announce its first offtake agreement.

“The benchmark pricing outcome represents a vote of confidence in the company’s ability to deliver and positions us to sell increasing quantities of coal as our mine’s capacity grows,” he said.

“This is an important milestone in our plans to establish Orpheus Energy as a significant supplier of coal to both export and Indonesian domestic markets.”

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production