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ASF Group Limited (ASX:AFA) Commence Coal Sales To China.

Sydney, Australia, Jan 21, 2010 - (ABN Newswire) - ASF Group Limited (ASX:AFA) (PINK:ASFTF) announce further to the Company's ASX announcement on 16 September 2009 concerning its strategic co-operation with Fujian Materials (Group) Co., Ltd ("FMGC"), a Fujian state-owned enterprise, the Company is pleased to announce that, through its wholly-owned subsidiary ASF Energy Pty Limited, it has entered into a Coal Sales Agreement with FMGC for the immediate sale and export of coal to China.FMGC intends to import 2 million tonnes of coal annually from Australia, steadily increasing this to 10 million tonnes per annum and has agreed to purchase coal exclusively from ASF Group sourced from the Australian energy and resources sectors.Under the Coal Sales Agreement, ASF Energy will supply coal product to FMGC procured under a supply agreement of product initially sourced from coal fines deposits at coalfields on the south coast of New South Wales.ASF Energy is also seeking other supply sources of Australian east coast coal which could either be contracted for supply or acquired to assist ASF to expand its coal supply and export business.FMGC has already raised a Letter of Credit in ASF Energy's favour in respect of the first shipment, comprising approximately 45,000 tonnes of coal which is expected to depart Port Kembla by February, 2010. Subject to the successful completion and delivery of this shipment, ASF Energy intends to make regular monthly 45,000-tonne coal export shipments to FMGC, thereby creating a significant source of recurring cash flow for ASF.Chairman of ASF Group, Ms Min Yang, said "the Company is encouraged by the exclusive working relationship with Fujian Materials that this sale transaction represents and looks forward to developing a profitable business in the export of coal from Australia to China."About ASF Group Limited:ASF Group Limited (ASF) is engaged in property services and development, including property project marketing of developments in Australia and China, partnering and facilitating projects in areas, such as resource, mining and related technology, travel services and educational services. The Company is also involved in the research and development of an internal combustion engine using the Scotch Yoke Technology, and the marketing of the technology. On June 28, 2006, ASF acquired 40% of a joint venture company, ASF Macau Multinational Limited. On April 19, 2006, the Company acquired ASF Properties Pty Ltd. On September 9, 2005, the Company disposed its wholly owned entity, CMC Power Technologies Pty Ltd. Some of ASF's subsidiaries include ASF Corporate Pty Ltd, Aria Power Products Inc. and PRD Nationwide China Pty Ltd. In January 2007, FY Holdings Limited purchased a 57.51% stake in the Company.

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Publication:ABN Newswire
Geographic Code:8AUST
Date:Jan 21, 2010
Words:452
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