White Energy signs MoU on Indonesia coal exploration
Tuesday, June 7 2011 - 07:43 AM WIB
Under the Memorandum of Understanding (MOU) White Energy and TMB have agreed to carry out exploration in coal properties in Indonesia, the world?s top thermal coal exporter, White Energy said in its statement to the Australian Stock Exchange.
White Energy and TMB may form a joint venture between themselves or working with third party to develop the projects, the firm said in the statement, adding it is anticipated that White Energy will have a controlling interest in any joint venture.
?The execution of this MOU with PT Tri Mitra Bayany is a further step in strengthening the company?s plan of becoming an integrated coal miner and technology provider in Indonesia,? said Brian Flannery, White Energy?s Managing Director and CEO.
The mining properties being considered by White Energy and TMB are likely to be suitable for using upgrading using White Energy?s patented Binderless Coal Briquetting (BCB) technology which can turn coal with low heating value into a high-quality, bituminous type.
?Most of the remaining coal concessions in Indonesia are high in moisture and low in energy value and are therefore well suited to the application of our unique coal upgrading technology,? said Flannery.
The Indonesia government is drafting a regulation which will require coal producers to upgrade brown coal into a medium-quality one with minimum heating value of 5,600 kcal/kg GAD before exporting the fuel by 2014.
?If implemented, this would clearly provide a significant opportunity for White Energy in the Indonesian market,? the firm said.
White Energy Resources, through its 51 percent owned Indonesian subsidiary company PT Kaltim Supacoal (KSC), will also continue to focus on the ramp-up of production at its first one million tonne per annum coal upgrading plant at Tabang, Indonesia which has been developed in partnership with IDX-listed PT Bayan Resources Tbk (Bayan). (Fitri/Lucky)