White Energy says E. Kalimantan coal upgrading project on schedule

Australian firm White Energy Company Limited said on Tuesday its Tabang coal upgrading project in East Kalimantan has been 45 percent completed by the end of June 2008 with commissioning is expected to be on schedule in the first quarter of next year.

Production will be ramped up to full capacity of 1 MTPA over a 6 month period from April through September 2009 with coal sales of upgraded product expected during this period, the company said.

White Energy?s 51% owned subsidiary, PT Kaltim Supacoal, is currently building a binderless coal briquetting plant in Tabang in a JV with PT Bayan Resources. White Energy?s technology upgrades lower grade, high moisture coals by removing the moisture from the coal, thereby significantly increasing heat energy content and quality. Coal from Bayan?s Tabang mine in East Kalimantan has been extensively tested through White Energy?s process. The resultant upgraded coal is of export quality and will command export prices when sold by PT Kaltim Supacoal, the company said.

White Energy has entered into a long term strategic alliance with PT Thiess Contractors Indonesia, whereby Thiess is providing procurement and construction services for the development of White Energy?s Binderless Coal Briquetting plants in Indonesia.(denny)