Prophecy Resource and Sojitz Corp. of Japan Sign Cooperation Agreement to Market Coal to China
Vancouver-based Prophecy Resource Corp. and Sojitz Corporation of Japan have entered into an exclusive agreement to jointly market thermal coal from Prophecy’s 208 million tonne Ulaan Ovoo coal deposit to buyers in China. The agreement also covers Japan and Korea, provided that the coal is sold through the Chinese land border from Mongolia. Sojitz Corp and its Beijing affiliate, China Sojitz (China) Co. Ltd., will assist Prophecy on a best efforts basis in securing letters of intent and/or offtake agreements from potential coal buyers for its thermal coal in advance of planned 2010 mining operations. Sojitz will also advise Prophecy on the best pricing parameters including volatility concerns in specific markets. Sojitz is an international corporation involved in a wide range of businesses including energy (coal, LNG, oil and gas), metals, chemical and functional materials and machinery. Prophecy is a coal producer in Mongolia.