Strategic Natural Resources' (SNR) subsidiary, Elitheni Coal, has agreed a container finance leasing agreement with Thelo Rolling Stock Leasing to help ship coal from its mine in the Eastern Cape of South Africa.
Under the terms of the lease agreement, which is for an initial term of six years, Thelo will make available to Elitheni (which is 74% owned by SNR) up to 1,500 steel rolling stock containers to ship coal from the Elitheni Mine in the Eastern Cape of South Africa.
Rental of the containers is calculated on a per container per month basis and full production of them is underway. Elitheni anticipates receiving the first batch of containers during the first half of November 2012, which will enable the company to deliver its first shipments under the Trasteel off take agreement.
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David Nel, Chief Executive Officer of SNR, said: "We are delighted to have secured this agreement with Thelo, which will result in a significant reduction in our short term capital requirements associated with bringing the Elitheni Mine in to full operation, and fulfilling our shipping commitments under the off take agreement with Trasteel."
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