Source: Wyoming Business Report
Article Date: 29/04/2009
SYDNEY, Australia White Energy Co. Ltd. (WEC), the company developing a coal upgrading facility with Buckskin Mining Co. near Gillette, has announced completion of the world’s largest clean coal plant at Bayan Resources’ Tabang mine in East Kalimantan, Indonesia.
The plant utilizes WEC’s exclusively licensed binderless coal briquetting (BCB) clean coal upgrading technology – the same technology to be used in the Gillette plant.
The commissioning process is now well underway and production at the plant is expected to ramp up to full capacity over the nex six months with export sales of the more valuable and environmentally friendly BCB coal taking place during that period.
Through the joint venture company, PT Kaltim Supacoal (KSC), the project allows White Energy to capitalize on the price spread that exists between low energy, high‐moisture sub‐bituminous coals and the much higher energy value bituminous coals.
The estimated average cost of production of upgraded BCB coal is lower than the mining costs for most global thermal coal produers. This positions KSC as a low cost producer of thermal grade coal that is cleaner to transport, handle and burn with less residual waste than traditional bituminous thermal coal.
The BCB coal will be priced similar to conventional high‐rank thermal coals, due to the similar energy yield, lower pollution profile, and general handling characteristics. Based upon current and forecasted coal prices for low‐rank feedstock and high‐rank bituminous coals, as well as the estimated capital and operating costs of the BCB technology, the BCB coal upgrading process is expected to enjoy a favorable long‐term coal upgrading price arbitrage, the company said.
White Energy CEO John Atkinson said, “The significance of this project is the fact it will be our first full commercial production, large‐scale operating plant, providing the first steady revenue stream to White Energy.”
The company’s Gillette plant currently under development will initially produce one million tons of BCB coal per year, with planned increases in annual production up to eight tons.