Market Strategy
In line with its stated
customer focus, Ensham prefers
to develop a relationship with
its customers that extends
beyond the purely commercial
considerations and regards
co-operation and mutual benefit
as essential foundations for a
successful contract partnership.
Ensham has not been, and has no
desire to be, strongly involved
in the spot market but has
pursued a market strategy
coupling the development of long
term relationships with market
diversification, both in terms
of market segment and
geographical location. Ensham
assesses potential markets on
the basis of market
characteristics (including size,
growth potential, competition,
sovereign risk), customer
characteristics (including size,
growth potential, reliability,
integrity, credit risk, business
style, and history), suitability
of the Ensham resource to match
market requirements, competitive
advantage, and potential
financial returns. |
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To date, Ensham coal has
been sold to:
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11 power utilities, 5
steel producers, and 9
industrial users in Japan, |
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5 power utilities and 1
steel producer in Korea, |
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3 power utilities in
Taiwan, |
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2 power utilities and 3
steel producers in mainland
China |
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2 power utilities and 3
industrial users in the
Philippines, |
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4 power utilities in
Europe, |
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1 steel producer in
Chile, |
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1 steel producer in
Brazil, |
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2 power utilities and 1
steel producer in India, |
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2 power utilities and 3
industrial users in
Australia. |
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1 power utility in
Israel |
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Ensham currently has a number of
large, long-term contracts (5-10 years) together with
numerous shorter term contracts (1-3
years).
Ensham has the capacity to meet large
contract tonnages and, because of the
flexibility of its workforce and the use
of contractors, has the ability to
rapidly increase production to meet
increased demand. The only limitation on
sales at present is the restriction on
rail and port capacity.
Ensham has built its reputation on
reliability of supply and consistency of
quality and its coal handling facility,
incorporating state of the art, low
maintenance, high reliability
components, is designed to enhance
Ensham’s reputation and ensure that
Ensham remains at the forefront of
operational efficiency as the productive
capacity of the mine expands.
Ensham exports from the RG
Tanna Coal Terminal, Gladstone which can
accommodate vessels of 25,000 DWT to
250,000 DWT. RGTCT can load two vessels
simultaneously, each at a rate of
4,000tph and has a reputation as being
one of the most efficient ports in
Australia. Ensham’s contract terms with
regard to ship loading are the standard
conditions used by all shippers at
Gladstone. Ensham’s stockpile capacity
at the port is currently around 700,000
tonnes and blending is possible from any
of Ensham’s separate pads, or with
other shippers at the port.
Ensham normally sell on an
FOB basis but will also consider CIF/C&F
contracts to some markets, if required.
Ensham accepts the JSM shipping terms
that are normally used by shippers from
the port of Gladstone. |
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