Paringa Resources Ltd. has signed a sales agreement with Big Rivers Electric Corp. for coal sales from its Poplar Grove mine, totaling up to 1.4 million tons of coal from 2019 to 2023. The sales agreement takes Paringa’s total 5-year contracted sales position to 6.8 million tons, including existing sales agreements with Louisville Gas & Electric (LG&E) and Kentucky Utilities (KU) and Ohio Valley Electric Corporation (OVEC) and Indiana-Kentucky Electric Corporation (IKEC).
Under the coal sales agreement, Paringa is contracted to deliver a minimum of 1.28 million tons and a maximum of 1.4 million tons of 11,250 btu/lb product from its Poplar Grove mine at annual fixed pricing and on a mutually agreeable delivery schedule. Pricing terms are consistent with Paringa’s existing sales contract with LG&E and KU.
Paringa believes the Poplar Grove mine’s direct barge access to the Green and Ohio river systems provides a significant transportation cost advantage over many other coal operations in the region, as well as BREC’s R.D. Green and D.B. Wilson plants located in close proximity to Paringa on the Green River.
“We have expanded our contracted position with three high-quality customers to 6.7 million tons, providing clear revenue visibility for a significant portion of our production over the next 5 years to a diversified customer base,” Paringa Chief Executive Officer Egan Antill said.