Orpheus Energy has announced an agreement with Abidin 1 Port Company, PT Suryacitra Mahkota Mandiri, to secure exclusive monthly barge loading capacity of 40,000 tonnes in Sungai Danau, South Kalimantan, on an ongoing basis. Orpheus anticipates the first barge loading within the fortnight and expects an additional 7500 tonnes in late October.
Abidin 1 Port is on Satui River, 30km northeast of SKJM Port, less than 10km from the coastline, with a current monthly loading capacity of more than 120,000 tonnes. With the recent SKJM Port agreement, Orpheus now boasts significant annual loading capacity of about 3 million tonnes.
Under contract, Orpheus has sourced the 4200 Kcal/kg (GAR) specification coal from nearby local miners and has entered into a five-year offtake agreement with an Indonesian trading group for 30,000 tonnes per month. The price is set against the Indonesian benchmark, with quarterly review.
The deal, according to Orpheus’ executive chairman Wayne Mitchell, “represents a further step in Orpheus’ integration to grow our infrastructure and trading divisions.”
Together with the SKJM Port agreement, he added, Orpheus will soon be loading and selling in excess of 240,000 tonnes per month out of South Kalimantan through 2018 allowing the company “a diversified revenue stream whilst fast-tracking becoming cash flow positive.”