Klaveness Combination Carriers (KCC) has extended a current contract of affreightment (COA) with Aussie metals and mining company South32.
The extension will see the Norwegian shipowner continue shipments of caustic soda to Worsley Alumina Pty Ltd, South32’s alumina refinery located in Western Australia.
Through this agreement the term of the COA is extended by three years from January 2019 to December 2021 with two one-year extension options, KCC said.
“We are proud to continue servicing South32 with our CABU and CLEANBU combination carriers for another 3-5 years providing the most efficient and environmentally friendly shipping solution for its caustic soda import to Australia,” said KCC managing director Engebret Dahm.
Klaveness have KCC have serviced Worsley with its combination carriers on a continued basis for close to 30 years.
About 50% of KCC’s current fleet capacity is allocated to transportation of caustic soda. KCC says it targets a "high contract coverage" for caustic soda.
KCC says the vessels have a deliberately lower contract coverage in the dry-bulk market due to better access to spot dry cargoes and need for flexibility.
South32, which was spun out of BHP Billiton in May 2015, is a producer of alumina, aluminium, manganese, silver, zinc, lead, nickel, coking coal and thermal coal.
Last month KCC gained a listing on the N-OTC market in Oslo after a private placement of shares valueing the company at NOK 1.7bn ($208m).
The company, owned 63% by Klaveness Ship Holding, issued 8.24m shares to nearly 70 investors at a price of NOK 44.38 per share.
The $45m proceeds will finance one existing 83,000-dwt newbuilding and will also be used to declare one option at China’s Jiangsu New Yangzi.
