Itochu to sell upgraded coal from Indonesia

Australian firm White Energy Technology Limited has signed a Heads of Agreement (HoA) with major Japanese trading and investment company Itochu Corporation to form a joint venture to sell coal upgraded from a proposed coal briquetting plant in Indonesia to Japan and other markets.

Definitive agreements with Itochu are scheduled to be signed within 30 days, according to a statement released Monday by Australian mining technology developer Amerod Resources Limited, which owns an option to acquire White's world leading patented Binderless Coal Briquetting coal technology.

Previously, White signed a HoA with PT Bayan Resources to build and operate a coal briquetting plant using Whites? patented technology to process sub-bituminous coal from Tabang mine in East Kalimantan with initial production capacity of 1 million tons per annum of upgraded coal.

The plant is expected to improve the coal?s calorific value from approximately 4,200 kcal/kg to 6,500 kcal/kg. It is also projected that once this plant has proven capacity, a further 2 million tons per annum line will be added.

Tabang coal mine is owned by PT Fajar Sakti Utama. Meanwhile, Bayan Resources holds the right to sell domestically coal output from the mine. (Robert)