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Monday, 10 September 12
ORPHEUS ENERGY SECURES INDONESIAN COAL TRADING LICENSE


COALspot.com - Indonesian coal producer, Orpheus Energy (ASX:OEG) has announced today that the Indonesian Ministry of Energy and Mineral Resources has approved the application by OEG’s fully owned subsidiary PT Orpheus Energy for an independent coal trading license, a press release from company said.

The coal trading license provides OEG with a new potential profit centre as it enables the company to not only sell its own coal but also production from other miners. Targeting power stations and trading groups from India, South China and Thailand, it is anticipated that OEG will ramp up its current trading volume of approx. 30,000t/month to several hundred thousand tonnes per month over the coming year.

Coal trading in Indonesia typically earns $1-$3 per tonne net margin for the coal trader.

Executive Chairman Wayne Mitchell said: “We have been working on securing our own coal trading license for some time and I am delighted that we are now able to add the next element to our overall Indonesian vertical integration strategy of coal exploration and production, coal trading and infrastructure. Trading our own and other miners’ coal provides Orpheus the flexibility and diversification to protect and enhance company earnings, particularly in a low coal price environment.”



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