Also, Geo Energy will be spending an initial capex of US$60 million to hire a mining contractor for 15 years to dig up the coal at the same Harfa mine, estimated to have reserves of between 15 and 20 million tonnes.
Geo Energy Resources has signed an offtake agreement with commodities trader Trafigura where the latter will buy the entire production volume of the former's mine at Harfa of some 1.5 million tonnes per year.
Under terms of the agreement, Trafigura will provide between US$50 and US$100 million in prepayment to help ramp up the production.
