The deal, which is effective through June 5, 2021, requires Sloane to exploit a minimum of 4.2 million metric tons (mt). Sloane will be responsible for the mine’s thermal coal production, commercialization and associated costs.
Additionally, it will be entitled to receive and commercialize a percentage of the production, to cover, among other things, the mine’s operating cost.
Norcarbon will be entitled to the remaining percentage of production, which will be sold to Sloane at a set price; that price may be adjusted for changes in stripping ratio and international coal market prices.
Sloane will provide Norcarbon with an advance payment for the purchase of future coal, and will also sell to Norcarbon a certain amount of coal enabling the company to continue to meet its commercial commitments.
Sloane’s operation of the Cerro Largo mine is expected to commence this month.