Orpheus Energy has announced a binding agreement with the proprietor of SKJM Port in South Kalimantan to secure exclusive loading capacity exceeding 200,000 tonnes monthly over 10 years.
Of the deal Orpheus’ executive chairman Wayne Mitchell says is a “highly material infrastructure development which will provide robust cash flows for Orpheus.” The agreement, he added, “fundamentally changes our company from a modest coal producer and seller to a vertically integrated mining company of significant size.”
He says Orpheus can now manage its entire chain from mine mouth to end buyer, amid “challenging market conditions towards its goal of becoming cash flow positive.”
- Exclusive 10-year agreement with SKJM Port operators in South Kalimantan, initially for 5 years, with a 5-year extension at Orpheus’s option;
- Initially 150,000 tonnes per month increasing to over 200,000 tonnes/month (up to 3 million tonnes/annum) after port upgrade. The first barge will be loaded immediately;
- Orpheus will be responsible for loading slot allocations
- A first infrastructure deal demonstrating stated vertical integration strategy;
- A strategic infrastructure platform to increase revenues;
- Acquisition and development costs funded off balance sheets by local infrastructure investor with principal to be repaid by SKJM Port.