White, Bayan appoint ANZ to finance E. Kalimantan coal upgrading plant project

Australian firm White Energy Company Limited announced on Tuesday that it and partner PT.Bayan Resources ahs appointed Australian and New Zealand Banking Group Limited (ANZ) for the project financing of its coal upgrading plant project in East Kalimantan.

The company holds 51 percent stake in PT. Kaltim Supacoal (KS), the plant owner, and Bayan holds the remaining balance.

KS is planning to build coal briquetting plant with initial capacity of 1 million tonnes per annum upgradable to 5MTPA in Bayan?s Tabang mine. The plant is expected to commence operations in second half of 2007, White said in November 2006.

White said that initial site works at the site had started and tender process for long-lead items had been completed with orders were now placed for critical components. Senior project management appintment had been made with key personnel now operating onsite, said the company.

KS is using the patented coal technology to process relatively poor quality coal from Tabang mine into higher quality and more environmentally friendly product. Based on the trial, the technology could improve the energy content of the coal produced from 4,200 kcal/kg to 6,500 kcal/kg. (alex)