White Energy, which was embroiled in the Independent Commission Against Corruption hearings over its Mt Penny mining lease, recently applied its binderless coal briquetting technology to the beneficiation of thermal and metallurgical coal fines.

During March 2014, White Energy applied for two of seven coal areas in Queensland put out to tender by the DNRM and was successful with one of these applications.

The exploration permit reference number is EPC 25623, covering an area 15km south of the town of Middlemount in the central Queensland coalfields.

In applying for the coal exploration permit, White Energy committed to a four-year exploration program under assessment by the DNRM, aimed at identifying coal resources in the subject area.

The application included nominal application fees.

“The company is now in the process of completing the relevant acceptance and ancillary application forms for assessment by the DNRM prior to the formal grant of EPC 25623 in the near future,” it said in a statement.

“White Energy is also focused on identifying good quality coal properties for acquisition, where the BCB technology can be utilised to add value to the projects.

“It is expected that some of the resources currently under consideration by White Energy will not require application of the BCB technology and can be mined and sold directly into export and domestic markets.”

White Energy may be hoping for a new start in Queensland without the baggage it carries in NSW.

White Energy managing director Brian Flannery admitted his concerns about the legality of the Mt Penny tender process to the NSW corruption watchdog despite blaming environmental concerns for pulling out of a planned $500 million purchase of Cascade Coal.

In the ICAC enquiry it was alleged former minerals and energy minister Ian Macdonald provided inside information to Labor powerbroker Eddie Obeid over the tender of the Mt Penny lease near Mudgee and then awarded the exploration licence to Cascade, a company 25%-owned by Obeid.

In September 2010, Flannery paid $640,000 for shares in Cascade Coal, which could have increased in value to about $50 million if it was bought by White Energy.

It is alleged that Obeid was paid $28 million as part of a $60 million deal to remove any link between Obeid and Cascade before the proposed takeover went ahead.

But Flannery told the ICAC that he had no knowledge the $28 million was paid to Obeid, thinking instead it was paid to ensure rival companies did not bid against Cascade for the Mt Penny licence.

He said his concerns over the conduct of the Mt Penny tendering process prompted him to withdraw White Energy’s acquisition of Cascade.