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Waratah secures A$100m for commodities trader

14th October 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – The commodities division of ASX-listed Waratah Resources has established a A$100-million trade facility with the Bank of China, allowing the company to pursue its aim of becoming a significant commodities broker.

“Arranging this facility significantly enhances our capability to execute and facilitate commodities deals,” said Waratah executive chairperson Ben Kirkpatrick, adding that the company was well placed to broker deals with end-users in China, India and Korea.

At the end of last week, the commodities division announced that it had executed its first sales and purchase contract for some 50 000 t of thermal coal with a trial shipment from South Kalimantan, in Indonesia, to Shanghai, in China.

Delivery of the cargo was expected by November.

Kirkpatrick said, at the time, that the transaction was an early validation of Waratah’s dual-track strategy of being both a commodities trading house and a resource miner and developer, generating consistent and immediate revenues from commodity trading to underpin the company as it pursued significant long-term mine development projects.

Waratah is focusing its mine development strategy on a number of prospects in Gabon, including the only Joint Ore Reserves Committee-compliant defined iron-ore resource in the country.

Edited by Creamer Media Reporter

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