Forbes & Manhattan (Coal) Corp. (“Forbes Coal” ) has signed a three year offtake agreement for 1.75 million tonnes (total) with Vitol S.A. (“Vitol”). Vitol will be purchasing thermal coal from the Slater Coal properties at market prices.
Forbes Coal intends to transport the coal to the Navitrade Coal Terminal in Richards Bay using its increased rail transport and capacity with Transnet Freight Rail and Grindrod Terminals. Grindrod Terminals provides certain logistical, handling and stockpiling services to shippers in connection with the shipment of bulk cargoes.
About Forbes & Manhattan Coal Corp.
Forbes Coal is an emerging mid-tier southern African coal company. It holds a majority interest in two operating mines. The Company holds a 76.75% interest in Slater Coal (Pty) Ltd., a South African company (“Slater Coal”) which has a 70% interest in Zinoju Coal (Pty) Ltd. (“Zinoju”). Zinoju holds a 100% interest in certain coal mines in South Africa (the “Slater Coal Properties”). The Slater Coal Properties comprise the operating Magdalena bituminous mine (the “Magdalena Property”) and the Aviemore anthracite mine. The mines have a substantial combined resource of coal and each mine has a projected 18 year life span. Forbes Coal is in the process of increasing production at both mines and looks to triple production from current levels in the next two to four years using existing infrastructure and capacity. The Company has in-place transportation infrastructure allowing its coal to reach both export corridors and the growing domestic coal market. Forbes Coal has a strong balance sheet and an experienced coal-focused management team.
About Vitol S.A.
The Vitol Group was founded in 1966 in Rotterdam, the Netherlands. Since then the company has grown significantly to become a major participant in world energy markets and is now one of the world’s largest independent energy traders. Its trading portfolio includes crude oil, oil products, LNG, natural gas, coal, power, metals and carbon emissions.
Vitol recently established a coal presence in 2006. In the last five years it has rapidly grown to become one of the world’s top 5 marketers of coal. In 2010, Vitol marketed over 20 million tonnes of physical coal via long-term offtake contracts in Australia, Colombia, South Africa and the US and pre-financing arrangements in place in Indonesia, Russia and South Africa. Specifically in South Africa, Vitol has offices in both Johannesburg and Cape Town and currently ships product out of Richard’s Bay Coal Terminal and Maputo under long-term offtake agreements to utility and industrial customers in both the Atlantic and Pacific markets. Vitol works closely with junior mining companies in South Africa by assisting with pre-financing and in providing logistics solutions. Further details on Vitol are available on www.vitol.com
FOR FURTHER INFORMATION PLEASE CONTACT:
At Forbes:Sabina Srubiski
Investor Relations Manager
(416) 309 2957 – email: ssrubiski@forbescoal.com
Stephan Theron
President and Chief Executive Officer
(416) 861-5912 – email: stheron@forbescoal.com