Having identified the significant opportunity for the beneficiating and briquetting of thermal coal fines in Africa, White Energy established River Energy JV Company Pty Limited (“River Energy”) in 2009. River Energy is a joint venture established by White Energy and Black River Asset Management (“Black River”). Black River is a private equity fund that seeks to identify alternate investment opportunities for its shareholders.
The River Energy joint venture merges White Energy’s technical, design and operational skills with Black River’s investment acumen and transactional expertise. River Energy will seek to commercialise opportunities in the African coal mining industry that leverage the BCB technology.
The key elements of the joint venture are as follows:
During the half year period, River Energy South Africa Pty Ltd (“River Energy SA”) continued to consolidate its position in the South African coal industry, and is now in active project discussions with all major producers in that market. River Energy SA has recently presented submissions for a further two projects to potential partners, bringing the total number of formal submissions made to major producers in South Africa to four. In addition, River Energy SA is currently in advanced stages of completion of a Detailed Feasibility Study (“DFS”) with another major coal producer, which is expected to be finalised in the coming months.
River Energy SA continues to work closely with the Optimum Coal Holdings Limited management team to define a project which incorporates a BCB plant and meets the commercial needs of both parties, following successful completion of a DFS during 2012.
The project pipeline in the African market continues to grow as more opportunities are identified. In recent months the Company has seen additional interest in the BCB technology from potential Mozambique coal producers, as coal producers in that market look for opportunities to improve yields and find innovative logistical solutions.