The estimated $A80 million ($US57.19 million) facility, using White Energy’s patented coal upgrading technology, is expected to start up in January 2010.
Under the deal Buckskin has proposed to lease White Energy Coal North America (WECNA) the property to site the plant at the Buckskin mine.
White Energy expects production capacity to be reached in the 2010 second quarter at an annual output of 1.1 million tons of binderless coal briquettes.
The company said the output translated into 22.6 million British thermal units, representing a 35% increase over the non-upgraded Buckskin coal.
“WECNA’s investment in this facility underscores our commitment to increasing our presence in North America, where we believe we can play an important role in developing the region’s energy resources in a cleaner, cost-effective and more efficient way,” WECNA president Judy Tanselle said.
Buckskin is a wholly owned subsidiary of North American construction and mining services firm Kiewit.
White Energy shares lifted 4% to $2.08 in morning trade today on the Australian Securities Exchange.
