MORE QUESTIONS ARE NEEDED TO BE ASKED WITH DIRECT ANSWERS
20 April 2010
Companies Annuncement Office
Australian Securities Exchange Limited
TIARO COAL TO COMMENCE BULK MINERALS EXPORT OPERATIONS –
SIGNS AGREEMENTS WITH CHINA QINFA GROUP AND BUYING AGENT
The relationship between China Qinfa Group and Tiaro Coal continues to strengthen with the incorporation of a joint venture trading company and execution of a co-operation agreement focussed on developing substantial volumes of export trade in bulk commodities. The initial business focus is on coal.
China Qinfa Group (through its wholly owned subsidiary Bright Rock Holdings Pty Limited) currently holds 13.6 million shares in Tiaro Coal and is now a significant shareholder of Tiaro Coal with a holding of 21%. Shareholder approval was granted at a general meeting of shareholders on 25 March 2010 to increase this interest to 30%.
A joint venture company Australian Minerals Trading Pty Limited (AMT) has been formed to facilitate trade supply negotiations and agreements with suppliers in predominantly the Australian and New Zealand markets. AMT shareholdes are Yuen Hoi Ltd, a wholly owned subsidiary of China Qinfa Group and Tiaro Coal.
Following completion of the co-operation agreement AMT entered into a service agreement with Australian Commodities Trader Exchange Pty Limited (ACTE) to act as its Buying Agent. ACTE is a specialist procurement organisation.
The service agreement provides for ACTE to:
(a) Source coal supplies in Australia, New Zealand, Russia and other countries as
(b) Source iron ore supplies in Australia;
(c) Provide operational & administrative activities associated with coal suppliers and
trade finance providers required to finalise purchase contracts with overseas
buyers including China Qinfa Group; and
(d) Provide miscellaneous services, including identifying opportunities whereby
reputable coalmines require development capital with the ultimate intention to
provide AMT with coal off take capacity for its strategic international shareholder.
The business objective of AMT is to establish a substantial trading house supporting the commodity requirements of its key shareholder China Qinfa Group.
For 2010/2011 financial years a business growth target in excess of a million tonnes of exported commodity is planned and.………..More ASX AMT Tiaro Qinfa Coal Trading
Sourced & published by Henry Sapiecha