Resource Generation Ltd
(ASX:RES) has secured its first coal off-take contract, signing a 20 year deal with India’s Integrated Coal Mining Ltd.
The Indian company has agreed to purchase one million tonnes per annum of thermal coal for three years, increasing to two million tonnes per annum for a further 17 years.
The coal will come from Resource Generations Boikarabelo mine in South Africa which is due to commence production in early 2013.
The South African focused coal miner says the price will be agreed annually based on the international benchmark price at the time.
Integrated Coal Mining will also pay $10.5 million for a 10% stake in Resource Generation. Resource Generation reported a loss for the year to June 30, 2010.
