White Energy updates Tabang coal upgrading project

The following is an excerpt taken from ASX-listed firm White Energy Company Limited?s (WEC) quarterly report released on Friday on its Tabang coal upgrading project in East Kalimantan. (ed)

PT Kaltim Supacoal (KSC) ? Joint Venture with PT Bayan Resources (WEC 51%)

During the last quarter, KSC completed construction of its first 1 MTPA binderless coal briquetting plant at the Tabang mine. KSC personnel, under the supervision and assistance of the White Energy commissioning team, are now actively engaged in the commissioning of the Tabang Production Plant.

The commissioning program is now in its final stages of completion. To date, the commissioning program has gone according to plan with the final phase of commissioning expected to occur over the next few weeks. In anticipation that KSC will be producing upgraded coal in the near future, KSC is turning its attention to post commissioning operational issues. In this regard KSC has appointed its operations team with all but a few now located on site at Tabang and is finalising its ongoing operations and maintenance contract with Thiess Indonesia.

Importantly, KSC with the assistance of Bayan Resources and White Energy personnel, is now in the process of finalising its coal sales and marketing program.

KSC Tabang Project Debt Financing

On behalf of KSC, White Energy and Bayan Resources are continuing formal discussions with potential lenders regarding a mandate for a debt financing facility to underpin the accelerated rollout of additional plants at Tabang. The discussions have progressed well and we should be in a position to confirm relevant details shortly.(end of excerpt)