Bayan in long term deal to buy upgraded coal from KSC

ASX-listed coal upgrading firm White Energy Company said on Wednesday that its 49 percent partner in East Kalimantan coal upgrading project IDX-listed coal mining firm PT Bayan Resources Tbk has agreed to offtake 500,000 tonnes of upgraded coal per annum starting 2011 under long-term contract.

Director of Technology Keith Clark told reporters on a sideline of coal upgrading conference in Jakarta that PT Kaltim Supacoal (KSC), in which White Energy has 51 percent stake, will produce 750,000 tonnes of upgraded coal in 2011 and 1 million tones in 2012.

Clark said Bayan will buy KSC?s coal with CV of 6,100 kcal/kg under ?prevailing international market.?

KSC?s Tabang coal upgrading project is currently at commissioning phase and will enter commercial stage in December 2010.(denny)