TerraCom signs 5.5 year Mongolian offtake coal deal

Company News

by David Chau

TerraCom Ltd (ASX:TER) has signed a binding term sheet for a 5.5 year offtake in regards to hard coking coal, produced from the BNU Coal Mine in Mongolia.

The company signed this deal with a subsidiary of the Kingho Group, which is one of the largest private coal companies in China.

TerraCom says this agreement is for a total of 7.5 million tonnes over the 5.5 year term.

The company also says a definitive sales agreement will be developed in the coming weeks, and that payment terms are in USD in the form of 100% irrevocable Letters of Credit.

TerraCom posted a net loss of $51.8 million at 30 June 2016.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.