ECT says Ilthabi coal responded successfully to Coldry testing
Wednesday, April 29 2009 - 03:00 AM WIB
The company reported that the moisture from the IBU coal samples, that came from deep within the jungles of East Kalimantan, has reduced to as little as 13% from a starting moisture of 54%.
ECT Chief Executive Kos Galtos said these results were pleasing and ECT would now engage in more intensive discussions with IBU and ECT?s construction partners to determine the commercial viability of a project in such a remote location.
?The results are encouraging and we are now exploring the realities of what it will take to actually build a plant in remote Borneo in terms of both infrastructure needs and people resources,? he said.
ECT and IBU are in discussions over a Heads of Agreement (HOA) to build the plant, based on the outcome of an acceptable joint business model.
Galtos recently spent three days in Jakarta with the Chairman of IBU and senior executives where it was agreed that subject to successful pelletisation and drying of coal samples, the next step would be a HOA.
It is envisaged ECT and IBU will enter into a joint venture to build a Coldry plant in East Kalimantan. IBU will provide enough coal from its Kalimantan mine, at an agreed price, to produce 10 million tonnes per annum of Coldry for offsite consumption.
According to the company, Coldry Process is the world?s first economic method for dewatering brown coal, creating a high energy pellet with significantly reduced CO2 emissions compared to brown coal, while being suitable for export as a black coal substitute. (denny)