White Energy says E. Kalimantan coal upgrading venture progressing

Australian firm White Energy Company (WEC) said on Monday works to build coal upgrading facilities in Tabang, East Kalimantan are progressing with site clearing and earthworks have been substantially completed.

The company also said that application for environmental approvals have been submitted to relevant authorities. The due diligence exercise by ANZ Banking Group on the potential project financing of the JV continued together with negotiations on the indicative term sheet, it said.

WEC and East Kalimantan coal mining group Gunung Bayan had formed a coal upgrading JV called PT. Kaltim Supacoal (KS), with 51 percent and 49 percent shares, respectively.

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.

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)