White Energy updates E. Kalimantan coal upgrading project
Thursday, July 28 2011 - 07:58 AM WIB
1. PT KALTIM SUPACOAL (?KSC?) - JOINT VENTURE WITH PT. BAVAN RESOURCES (WEC 51%)
Overview
As advised previously, White Energy, through its 51% owned Indonesian subsidiary company KSC, is currently in the process of completing a number of engineering modifications to its binderless coal briquette plant at Tabang, Indonesia.
During the scheduled plant shutdown in June 2011, the planned extension to the coal drying column was completed successfully and on time. This modification was designed to enable the pre-briquetting moisture content of the coal to be reduced from approximately 35% to 6%-7% on a consistent basis, and will also allow the plant to be run at varying operating capacities.
Furthermore, during the June shutdown the site engineering team also completed installation of a soot blower to the 10 megawatt power station. This automated solution will ensure a more efficient plant operation by eliminating the need for the power station to be shut down periodically to clean the soot build-up. A number of other minor modifications were completed at the plant and adjoining power station during the shutdown.
Following the completion of the above modifications, operations at the plant recommenced on 1 July 2011. Although KSC staff are still in the process of gathering data on the effect of the drying column extension on the quality of the briquettes now being produced, test results conducted to date the on-site laboratory have shown that pre-briquetting moisture levels have been reduced to approximately 6%-7% as expected. Test work will continue over the coming weeks.
The planned modifications to the dust extraction and briquette handling/stockpiling systems are proceeding. Delivery of all necessary equipment to site is expected by the end of August 2011, necessitating a further shutdown of approximately one month to complete the remaining modifications.
It is currently expected that all outstanding plant modification works will be complete by the end of September 2011, enabling a ramp-up to full production capacity by the end of the 2011 year.
Following completion of the plant modifications referred to above, KSC will turn its attention to the construction of additional plant modules in Indonesia. In this regard, the White Energy engineering team has recently commenced design work on the next plant, which will take into account all the key learning from the design and construction of the first Tabang plant module.
IUP Licences
In relation to the IUP application, as previously reported the relevant application and supporting documentation has been submitted to the local government (Bupati). The local government agency has since confirmed that all documentation is in order and is currently being processed. Latest indications are that the IUP will be issued in August 2011.
2. OTHER BUSINESS DEVELOPMENT INITIATIVES
On 7 June 2011 the Company announced that it had entered into a Memorandum of Understanding with an Indonesian company called PT Tri Mitra Bayany (?TMB?), to identify and explore coal deposits in Indonesia.
The terms of the MOU provide that White Energy and TMB will cooperate in pursuing opportunities to develop exploration and mining properties in Indonesia. The mining properties being considered by White Energy and TMB are likely to be suitable for upgrading using the BCB technology, which has the potential to greatly enhance the value of such projects. (end of excerpt)