China Qinfa's Indonesian subsidiary to sell 70,000t of coal to Zhejiang Energy

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The deal, valued at about Yuan 47 million (USD 6.9 million) based on current coal prices, allows for a variation of plus or minus 10 per cent in volume, according to the filing.  Shipments are scheduled to begin this month and will continue until the contracted volume is fully delivered and settled.

The buyer, Zhejiang Energy Asia Pacific, is a shareholder of another Qinfa subsidiary, making the deal a connected party transaction under Hong Kong listing rules.

The supply agreement serves as a transitional arrangement separate from the two parties' 20-year supply agreement, as SDE requires more time to assess its annual production capacity, market sources said.

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Through the deal, Qinfa expressed confidence in securing stable revenue streams, supported by consistent demand from the state-owned power producer.

Zhejiang Energy Asia Pacific, based in Singapore, is a wholly owned subsidiary of Zhejiang Energy Group. The subsidiary plays a key role in sourcing coal from overseas markets to support the fuel needs of its parent company, Mysteel Global understands.

China Qinfa, listed on the Hong Kong Stock Exchange, is a coal mining and trading company headquartered in South China's Guangdong province. Its core business includes coal production, sales and logistics, with operations spanning China, Indonesia and Australia.

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Note: This article has been issued by MySteel and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.