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SGX JV CIC inks US$8.5m clean coal mining deal with Indonesian supplier
THE Commodities Intelligence Centre (CIC) has struck a US$8.5 million offtake agreement on behalf of its users with Indonesian coal supplier PT Anggun Makmur Energy (PT AME) to supply steam coal to power plants in Vietnam.
The first coal shipment to be produced by clean coal technologies will start in October 2019, CIC said on Friday. Through the deal, CIC is looking at expansion in Asia to markets such as China and Philippines; reducing cross border transaction costs and creating more trade synergies in the region.
CIC is a Singapore-based global trading platform for physical commodities backed by Enterprise Singapore. It is a joint venture between the Singapore Exchange, China-based ZALL Smartcom, and Global eTrade Services.
PT AME meanwhile is an Indonesian-based coal supplier principally engaged in coal mining, trading, infrastructure, logistics, and more.
CIC chief executive Peter Yu said the partnership with PT AME marks a significant milestone achieved by CIC that will facilitate intra-Asean trade and strengthens Singapore’s role as an international trading hub in the digital realm.
PT AME president director Pak Djoko added: "CIC’s eTrade Platform extensive network and market knowledge will allow us to enter the Vietnam market with confidence and help bring our sustainable and environmental-friendly mining practices to the country."