Tellus Holdings Signs Equipment Supply and Finance MOU

20th October 2015, Tellus Holdings

• Tellus signs MOU with CCTEG for mining equipment finance
• Finance Package is valued at AUD$120 million
• CCTEG is one of China’s largest state-owned enterprises, generating more than US$7B revenue and specialising in the manufacture and sale of specialised mining equipment

Tellus Holdings Ltd (“Tellus”) is pleased to announce it has signed a Memorandum of Understanding (MOU) with China Coal Technology and Engineering Group Corp (CCTEG) for the supply and finance of mining equipment to develop Tellus’ Chandler and Sandy Ridge Projects.

The package is valued at AUD$120 million and includes the supply and financing of mobile diesel equipment, conveyor systems, continuous miners, mobile bolters, auxiliary fans and salt handling plants.

An official signing ceremony in Beijing between the parties was attended by senior executive of both companies and accompanied by representatives from the Northern Territory Government.

“This is a great achievement for the Company and significantly de-risks our project equipment supply and funding requirements. CCTEG is a major supplier of high-quality specialised mining equipment to global operators, and also a leader in research and development of new mining technologies and processes,” Tellus Managing Director, Mr Duncan van der Merwe said.

CCTEG is one of China’s largest state-owned enterprises (SOEs), generating more than US$7B revenue from the manufacture and sale of specialised mining equipment and operating mines. CCTEG has been involved in the development and operation of more than 70% of China’s large underground coal mines.

“We look forward to working with CCTEG as the projects progress through bankable feasibility studies to finalise equipment requirements,” he said.

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