MBF Group
In terms of an intermediary coal entity, the Issuer has been granted a licence for sales as well as import and export. The aforementioned decision has a significant impact on the development and further activities of the Issuer in the field of brokerage and trade, direct purchase and sale of goods and acting as a broker. On 5 December 2022, MBF Group received information from the delegated entity, the Director of the Tax Administration Chamber in Poznań, on the positive consideration of the Issuer’s applications. In accordance with the decision communicated, the Company was entered on the list of intermediate coal entities registered in the Central Register of Excise Entities and the list of excise tax payers. The activities subject to excise duty relate to heating fuels – including LPG.
Back in December 2022, we signed a contract to sell hard coal. The contract was concluded with a capital company (društvo s ograničenom odgovornošću) based in Zagreb, Croatia. Pursuant to the signed Agreement, we contracted with mines located in the Balkans to purchase and receive no less than 100,000 tons of hard coal of 5-20 mm sort. (According to the accepted classification, grain size corresponds to the so-called medium sort, which includes grits and peas). The aforementioned Contract guarantees immediate commencement of purchase and transportation of coal to the final customer (recipient). The contract is for a minimum of 100,000 tons within the allocation of this quantity from the mine, with each delivery and receipt coordinated on an ongoing basis with the mine’s production capacity and their ongoing commitments to other customers.
As a result of the several-day visit to the countries in the Balkans, the Company’s managers held a series of working meetings and visits – both with entities with which cooperation has already been established and brand new ones. In the case of the former, due to their current commitments, signed contracts and the general situation in the coal market, no guarantees have been made to us that would enable us to immediately increase supplies from mines based in Bosnia and Herzegovina (in the context of the demand the Company currently has).
In the course of discussions with entities in the raw materials and mining industries, we managed to obtain direct contacts to other mining entities and those having coal with similar parameters and price to those required by the Issuer. This is undoubtedly an added benefit, as it will help us monitor the situation in real time and negotiate further to obtain more supplies. Significantly, there are significant resources in the Balkans, and the raw material from the region is usually classified as hard coal or lignite, and its quality varies depending on the specific mine and seam. The object of possible contracting will always be raw material corresponding to the supply contracts signed by the Issuer.
As part of our brokerage and direct sales offer, we also offer ENplus A1 wood pellets. This is a top quality pellet with the best quality certification. It is recommended for use in individual boilers. Wood pellets are biofuel densified from woody biomass with or without additives, usually in the form of a cylinder, generally from 5 mm to 40 mm in length and up to 25 mm in diameter, and with broken ends. It is produced from organic raw material under high pressure at the right temperature and humidity, without the use of chemical adhesives. As a biofuel, it is used for heating residential buildings, public facilities, industrial halls. Its energy properties and convenience of use make it one of the most popular and effective green energy sources(source).
