Winsway Coking Coal (01733) said it entered into a
strategic alliance agreement with Lung Ming Mining for cooperation in the marketing of
Mongolian iron ore products in the People's Republic of China and the role of the Group as
the exclusive buyer of iron ore products produced by the Lung Ming Group.
Under the pact, Lung Ming Group will be responsible for the production and supply of
Mongolian iron ore products and delivery of such products to Erlianhaote port, while the
Group shall have an exclusive right (subject to an exception) to purchase such products at
Erlianhaote port. The Group will arrange customs clearance, warehousing, logistics and
sale of such products in the PRC by utilizing the Group's logistics capacity and marketing
abilities in the PRC.
The target volume of supply is estimated to be 2 million tonnes for August to December
2012, with increment from time to time thereafter to 30 million tonnes per year in 2017
and onwards.
The agreement will regulate supplies of Mongolian iron ore products from the Lung Ming
Group to the Group for a period of 25 years starting from 2012 and may be renewed by the
parties upon agreement three months prior to its expiry. (HL)