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Friday, 11 March 16
ADANI GLOBAL BAGS 0.26 MILLION TONS OF COAL CONTRACT FROM LANKA COAL COMPANY
AdaniCOALspot.com: Lanka Coal Company (Private) Limited, Sri Lanka has awarded 260,000 +/- 10% tons of Power plant 6300 GAR calorific value coal to Adani Global Pty Ltd Singapore on 4 March 2016.

According to market sources, the total quantity will be supplied based on FOB South Africa or Indonesia and Ceylon Shipping Corporation will transport the coal from load port to Lakvijaya Power Plant.

A source familiar with the tender said that, the contract between Adani Global Singapore and Lanka Coal Company has been signed on 9 March 2016 and the coal will be shipped soon.

LCC floated a short term tender and bids were invited until 3 March 2016 10.00 am local Time. According to available information, LCC has awarded the contract on 4 March 2016.

In addition to Adani Global Singapore, International coal traders such as Swiss Singapore and Liberty Commodities have also participated tender. However, according to our sources, the price quoted by Adani Global was the lowest compared to the prices quoted by other two bidders which were at least US$ 1 to US$ 2 per ton higher than Adani Global's quoted Price.

According to another senior trading source, LCC has adopted a transparent procedure to finalize the coal supplier. The quick and transparent process yielded desirable results and got the best rates in the trade. This process has gained the confidence and comfort of International coal trading companies there by getting the best prices.

Lanka Coal Company (Private) Limited is 60% owned by Ceylon Electricity Board, 10% Ceylon Shipping Corporation, 10% Sri Lanka Ports Authority and remaining 20% owned by Treasury. LCC procures coal on behalf of Ceylon Electricity Board to supply 3X300 MW Lakvijaya Power Plant.

According to LCC's website, Lanka Coal Company (Private) Limited began supplying of coal to Lakvijaya Power Plant and from the initial experience gained, LCC has successfully delivered nearly 2 million metric tons of coal in 30 shipments as at October 2013.


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