Indonesia is the largest exporter of lower grade sub-bituminous thermal coal which is primarily used in the power generation industry. Ideally positioned in Asia with good export infrastructure, Indonesia exports approximately 75% of its coal production which quadrupled between 2002 and 2013.
According to the World Energy Council, Indonesia has 6.1 billion short tons of recoverable coal, located primarily in Sumatra and East and South Kalimantan.
The Indonesian market remains a key priority in the Company’s future growth plans. The BCB technology has been proven to add significant value to the upgrading of low rank sub-bituminous feedstock coals.
The Indonesian coal market is ideally positioned within the growing Asian market and with its general abundance of low rank feedstock coals, continues to present a significant opportunity for White Energy.
White Energy representatives have continued to undertake due diligence activities across a number of potential sub-bituminous coal areas in the East Kalimantan region of Indonesia. The coal properties comprise a mixture of coal qualities, with a large portion likely to be suitable for upgrading using the BCB technology. The Company is focused on the acquisition of a majority equity interest in good quality, low cost mining assets which can provide control and certainty of feedstock coal supply and enable it to capture a greater portion of the value chain.