SACL is a former subsidiary of Felix Resources, which was not swallowed up by Yanzhou Coal Mining’s takeover, formally completed early this year.
White Energy is now a diversified coal company capable of delivering a complete coal solution through its unique coal technology and the ability to develop and operate conventional coal assets, the company noted in its latest results presentation.
The commissioning of a 1 million tonne per annum Binderless coal briquetting (BCB) plant at Bayan’s Tabang mine in East Kalimantan, Indonesia, is now complete, including integration of the plant to the adjoining 10-megawatt power station.
“The addition of the ex-Felix Resources board and management team demonstrates the confidence in the BCB technology and White Energy’s core business of upgrading sub-bituminous coals,” the company said.
“The new management team will help drive the rollout of White Energy’s coal upgrading plants in the core markets of Indonesia, the United States, Australia, Africa and China.
“In conjunction with the SACL acquisition, the new board members have/are investing close to $100 million of their own money into White Energy to drive its expansion.
“As part of the deal, potentially another $45 million will be raised from SACL shareholders during September 2010 as part of a rights offering.
“This will result in White Energy having a very strong balance sheet with cash reserves between $200 and $250 million.”
This capital base will provide White Energy with a platform to pursue new opportunities in the coal sector and evolve into a more diversified Australian coal company, the company said.
During the year the company, through its 51%-owned Indonesian subsidiary PT Kaltim Supacoal (KSC), completed practical commissioning of its first commercial coal upgrading facility at the Tabang coal mine in Indonesia.
The coal upgrading plant is in the production ramp-up phase, with the focus being on the overall optimisation of the plant.
This includes the ongoing improvement in the quality and energy value of the upgraded coal being produced and the modification of some components of the plant to enable it to run at its nameplate capacity.
KSC sold its first shipment of upgraded coal in May 2010, with further sales of product taking place since the end of the financial year.
The company continues to focus considerable attention on its North American business development initiatives, including work on developing permits for both the Buckskin and Peabody Energy projects in the Powder River Basin, Wyoming, US.
Permit applications for both these projects are expected to be completed and submitted soon.
The company is working with the state of Kentucky with respect to the potential construction of a BCB plant in that state.
