Jakarta. Coal mining company Sumber Global Energy (SGER) announced on Monday that it has been awarded a contract to provide Vietnam Oil and Gas Group with 2.5 million tons of coal over the course of one year.

The supplied coal is designated for use by the Song Hau Power Plant located in Mai Dam town within Hau Giang province.

"We are pleased to welcome this coal supply agreement, which stands as a testament to SGER's reliability. We have been entrusted with the task of supplying coal to one of Vietnam's most important power plants," Sumber Global CEO Welly Thomas said in a statement.

According to the terms of the agreement, Sumber Global will furnish coal with a gross calorific value of 5,743 kcal per kilogram.

In the current year, the deliveries will be conducted in three installments, comprising 300,000 tons, 500,000 tons, and 600,000 tons of coal, respectively. The remaining supply, scheduled until August of the subsequent year, will be dispensed in two stages, totaling 700,000 tons and 400,000 tons.

This marks the second coal supply agreement that Sumber Global has reached with a Vietnamese company within the span of a week. On August 9, the company inked a deal to provide Vosco Maritime Service (VOMASER) with 840,000 tons of coal valued at $60.63 million.

Welly expressed Sumber Global's ongoing commitment to exploring new markets through participation in coal supply tenders in countries such as Sri Lanka, Bangladesh, and the Philippines. Meanwhile, the company remains dedicated to fulfilling existing coal supply commitments with its customers in China and India.

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