Duncan said White Energy saw a unique opportunity to pursue the South African market because the country produced a significant quantity of thermal coal fines, also known as small coal particles.
“During the year we have continued to work closely with River Energy (51% White Energy owned joint venture with Black River) to commercialise this opportunity in Africa, and are currently in the process of completing a detailed feasibility study with a large South African mining company,” he said.
Duncan said this venture would be an exciting opportunity for the company and it believed there was scope to actively target more coal fine markets in the near future.
Meanwhile, White Energy’s managing director Brian Flannery said its BCB technology already had a successful run in other coal producing regions, including the US and here in Australia.
“Over 70 different sub-bituminous coal and bituminous coal fines samples have been tested to date, these include coals from USA, Indonesia, Mongolia, Russia, Australia and South Africa,” Flannery said.
“In most cases the results of these tests have been positive, which has continued to generate high levels of interest in our company’s BCB technology,” he added.
Flannery expanded on White Energy’s 51% owned subsidiary River Energy’s activities, which involved the progression of a definitive feasibility study with a major coal producer in the South African market.
“The DFS envisages the construction of a circa 500,000 tonne per annum coal fines upgrading plant at the coal producer’s mine,” Flannery said.
River Energy plans to reach a decision to proceed with the construction of a plant during the first quarter of 2012.
Speaking about the company’s recent disagreement with Indonesian joint venture partner PT Bayan Resources, Duncan said the actions of Bayan had been completely unexpected.
“The board and management of White Energy are extremely disappointed with the timing of Bayan’s recent actions, considering that modification works to address the remaining technical issues at the plant are in the final stages of completion,” he said.
The JV partners have been on rocky terms since early November, but the partnership further soured after Bayan requested it purchase its share of their JV company, PT Kaltim Supacoal, for $US45 million.
Duncan said the company was currently assessing all of its options to deal with the dispute, including the possibility of taking legal action.
