Cockatoo Coal director Peter J Nightingale said both deals, which are subject to a voluntary escrow restriction for 12 months, would accelerate the exploration and development of its projects and enhance Cockatoo’s access to the important Korean market – if and when its projects come into production.
“In addition, without any binding commitment for the sale of coal, the company has granted SK Corporation and Kores certain rights for marketing coal to Korea and, with the prior consent of the company, SK Corporation and Kores may bring other opportunities to sell coal to certain other regions to the company's attention,” Nightingale said.
The Korean Government has set aside a substantial sum of money to increase its interests in overseas coal mines and increase its bituminous coal reserves, as the country has no substantial bituminous coal reserves of its own and relies wholly on imports from China, Indonesia and Australia, Joins.com reported.
Cockatoo Coal is now engaged in four coal exploration projects, which include the Wonbindi and Dingo coal projects in Queensland’s Bowen Basin, the Mintovale coal project in Queensland’s Moreton Basin and the Guluguba coal project in Queensland’s Surat Basin.
SK Corporation is the largest energy company in Korea with major business areas being petroleum refining, petrochemicals and coal.
Kores, a Korean government company, has played a pivotal role as a comprehensive supporting organisation of the resources industry.
Cockatoo Coal shares were trading around 17 cents mid-morning.
