South Africa-based coal producer Coal of Africa Limited (CoAL) has announced that it has signed a binding memorandum of understanding with global trading company Vitol Group of Companies (Vitol).
Accordingly, Vitol will be responsible for CoAL's marketing operations for all export thermal and coking coal for a period of eight years, except for the Makhado product where the marketing period is five years from the start of production.
The coal available under the agreement in question excludes all coal subject to current agreements that are in place as well as any coal off-take that may be agreed with the coal producer's strategic equity partners.
Following the signing of the agreement, Coal of Africa shares surged approximately 12 percent.