It is reported that Blaze Energy has signed a partnership agreement to process and sell coal at the GreenFields coal mine located in Gary, West Virginia, US.
Under the terms of the agreement, effective from 1st October 2013, Blaze Energy will purchase annually a minimum of USD 4,080,000 worth of mined coal for processing from GreenFields
The company will also make advances on its coal purchase in the amount of USD 500,000 to GreenFields.
Mr Leon Blaser chairman and CEO of Blaze Energy said that "With its existing reserves, rail accessibility, and geographic location, the ability to operate out of the GreenFields site was critical to the Company's business model, and the fulfillment of the pending coal sales agreement abroad."
However, the company will process the high quality, metallurgical grade coal for re-sale domestically and abroad and the full performance is expected to result in USD 117 million in gross revenues annually with net revenue of approximately USD 26 million based on internal projections.
Source – Energy Business Review