7 June 2011 – White Energy Company Limited (ASX:WEC; OTCQX:WECFY) (White Energy) today announced it has entered into a Memorandum of Understanding (MOU) with an Indonesian company, 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. White Energy and TMB intend to identify potential mining projects within Indonesia, with the view to developing such projects in joint venture either between themselves or in conjunction with a third party. It is anticipated that White Energy will have a controlling interest in any joint venture.
The mining properties being considered by White Energy and TMB are likely to be suitable for upgrading using White Energyâ€™s patented Binderless Coal Briquetting (BCB) technology. The ability to utilise the BCB technology on these coal concessions has the potential to greatly enhance the value of such projects.
White Energyâ€™s Managing Director and CEO, Mr Brian Flannery said, â€œThe execution of this MOU with PT Tri Mitra Bayany is a further step in strengthening the companyâ€™s plan of becoming an integrated coal miner and technology provider in Indonesia.
â€œMost 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.
â€œWe understand that the Indonesian government is currently considering regulations which may require coal exporters to upgrade high moisture coal to at least 5,600 kcals/kg GAD, before it can be exported, commencing in 2014. If implemented this would clearly provide a significant opportunity for White Energy in the Indonesian market.â€
As White Energy explores potential mining projects in Indonesia with TMB, it will 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 PT Bayan Resources Tbk (Bayan). It is expected that once the Tabang Plant is operating at nameplate production capacity, White Energy and Bayan will expand their joint venture both at Tabang and in other locations.
TMB is a highly respected Indonesian conglomerate which has significant interests in a number of mineral holdings as well as interests in oil and gas, power generation and property development. TMB also has significant local expertise in identifying, securing and assessing coal properties in Indonesia.