White, Adaro and Itochu in coal up-grading venture

Australian firm White Energy said Wednesday it had signed joint venture agreement with Indonesia?s top mining company Adaro Group and Japanese trading powerhouse Itochu Corp. to set up coal upgrading process plants at Adaro?s coal mines in Kalimantan.

?The formation of the JV will be subject to the parties completing a financial and technical feasibility, with the aim of a processing plant being built with the capacity to produce 1 million tonnes of upgraded coal per year, with the intention to increase plant capacity to 8 MTPA,? the company said in a release.

The deal is the second coal up-grading venture the company has undertaken in Indonesia. The first is a joint venture to set up similar plant in Bayan Group?s Tabang coalmine in East Kalimantan. (alex)