White Energy seeks further opportunity in coal upgrade business

Australian firm White Energy Co. Ltd. said it had entered into head of agreements with a number of large global corporations to investigate the potential to commercially exploit its coal upgrading technology in the key markets of China, Indonesia and Japan.

?Negotiations are ongoing with a number of these parties and final documentation is likely to be signed soon,? the company said in an annual report released Friday. The company did not give detail.

White Energy had teamed up with PT Bayan Resources to set up 5MTPA coal briquetting facility in East Kalimantan with production expected to be commenced 2007..

Bayan and White Energy are exploiting the patented coal technology to process relatively poor quality coal from Bayan?s Tabang mine in East Kalimantan into higher quality and more environmentally friendly product. Bayan will buy 1.5MTPA of the coal produced by the JV for the first 5 years.

The joint venture is 51 percent owned by White?s and 49 percent by Bayan. (alex)