Tiaro Coal and the China Qinfa Group (Qinfa) have formed a joint venture trading company called Australian Minerals Trading pty ltd (AMT) to develop coal and other bulk mineral trading opportunities.
Qinfa's core strategic strengths lie in ownership of access rights to Chinese ports (Qinhuangdao and the developing port facility at Zhuhai), ownership of rail off-loading stations and its fleet of wholly owned bulk ship carriers, as well as ownership of Chinese coal minesin Shanxi and Inner Mongolia. Qinfa has strong financial institution support from trade finance providers as well as negotiation capacity to ensure "on time bulk ship allocations" with vessel charterers.
Through cooperation between Tiaro and Qinfa Australian Minerals will look to facilitate trade supply negotiations and agreements with suppliers in predominantly the Australian and New Zealand markets. Australian Minerals shareholders are Yuen Hoi Ltd, a wholly owned subsidiary of Qinfa and Tiaro Coal.
Following completion of the co-operation agreement, Australian Minerals has 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:
Australian Minerals business objective is to establish a substantial trading house supporting the commodity requirements of its key shareholder - Qinfa. Over the next financial year, a business growth target in excess of a million tonnes of exported commodity is planned.
Profits earned by Australian Minerals through its development of trading activities will be distributed to its shareholders Qinfa and Tiaro Coal, thus providing Tiaro Coal with a source of capital to build its coal exploration and future mining businesses.
last updated 12 Feb 2014