Griffin coal for urea project

The administrators of Griffin Coal have signed an agreement with Perdaman Chemicals and Fertilisers to supply up to 2.95 million tonnes of coal per annum.

The deal, to commence in 2012, will supply coal to Perdaman's still-in-development Collie urea project.

The project, worth $3.5 billion, will produce 2 million tpa of urea for local and export use.

Perdaman chairman Vikas Rambal said he was appreciative of administrator KordaMentha's work in putting the deal together.

"This agreement is a significant step forward in terms of having now signed the three key contracts; (the) urea off take agreement, the engineering, procurement and construction contract and coal supply agreement, which allows us to accelerate the debt funding phase of the project", Mr Rambal said.

The signing of the coal supply agreement closely follows the recent sale of Griffin to Lanco Infratech.