White Energy updates E. Kalimantan coal upgrading project

The following is excerpt from White Energy Company?s quarterly report released on Wednesday

Joint Venture with PT Bayan Resources (WEC 51%; Bayan 49%)

The Company continues to make steady progress in conjunction with its project plan on all major activities relating to the construction of the Binderless Coal Briquetting plant at the Bayan Resources Tabang Mine in East Kalimantan, Indonesia.

The following summarises some key developments since the last quarterly update:
? Thiess Contractors are maintaining the construction schedule with no delays to the critical path. Mobilisation of plant, equipment and temporary and materials is underway and foundation piling of the production module is in progress. Camps and offices are also being constructed. At various times, construction progress has been effected by high seas and low water in the river system delaying barging to site, however the overall critical path has not been delayed (although some float time has been consumed).
? All remaining ancillary agreements with Bayan in respect of the project have now been completed. In this process certain elements of the transaction were amended, including as follows:
? An increase in the sale price for that portion of upgraded product sold to Bayan has been agreed from US$40/tonne to US$46.25/tonne. This represents an increase of 15% on the previously agreed sale price and will increase profitability and returns to the joint venture. This increased sale price is now fixed for 4 years as opposed to the previously agreed term of 5 years. After 4 years, the parties will again renegotiate the sale price. The price of the coal supplied by Bayan to the joint venture for upgrading will also now be fixed for 4 years rather than 5 years, to match the term of the offtake agreement.
? Bayan has agreed to assist the joint venture in securing transportation of the upgraded bnquettes from the plant to the Balikpapan Coal Terminal. This includes a small increase in the coal terminal charges paid to Bayan by the joint venture. (end of excerpt)