Mr. Stephan Theron reports
FORBES & MANHATTAN COAL ANNOUNCES SIGNIFICANT OFFTAKE AGREEMENT
Forbes and ManhattanCoal Corp. has signed a three-year offtake agreement for 1.75 milliontonnes (total) with Vitol S.A., a leading energy trading company. Vitolwill be purchasing thermal coal from the Slater coal properties atmarket prices.
Cash flow from this offtake agreement will fund thecontinued ramping up of production at its two operating mines -Magdalena and Aviemore. The agreement is initially for three years andwill support the previously announced production expansion plans.
ForbesCoal intends to transport the coal to the Navitrade Coal Terminal inRichards Bay using its increased rail transport and capacity withTransnet Freight Rail and Grindrod Terminals. Grindrod Terminalsprovides certain logistical, handling and stockpiling services toshippers in connection with the shipment of bulk cargoes. As per thepress release of December 7, 2010, Grindrod Terminals shall provideForbes Coal with export coal capacity in the Terminal of 600,000 metrictonnes in 2011, 720,000 metric tonnes in 2012 and 960,000 metric tonnesin 2013.
"This milestone for Forbes Coal will support our plannedexpansion into the coal export market. We have seen a steady increase inexport prices over the past 12 months, driven by an increase in demandfrom India. Together with our increased export capacity at Richard'sBay, the Company is on track to establish itself as a mid-tier SouthernAfrican coal company." said Stephan Theron, President and ChiefExecutive Officer of Forbes Coal.
We seek Safe Harbor.