WHITE ENERGY COMPANY LIMITED - ASX: WEC

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Description

White Energy is an innovative coal technology business listed on the Australian Stock Exchange that is well positioned to leverage global macro trends in the energy sector and take coal into the future as a cleaner and more efficient fuel.

Bayan Resources Project, Indonesia - Joint Venture Structure

White Energy’s first commercial joint venture is with PT Bayan Resources Tbk (Bayan). Bayan is one of the largest coal miners in Indonesia and owns several large sub-bituminous deposits in Tabang, East Kalimantan. White Energy and Bayan have established a joint venture company, PT Kaltim Supacoal (KSC), which is owned 51% by White Energy and 49% by Bayan to pioneer the BCB technology in Indonesia.

White Energy Company North America

WECNA is the North American division of White Energy and is located in Rockville, Maryland, USA. WECNA is actively pursuing the expansion of the BCB technology in North America through the establishment of a strategic alliance and joint venture company with Buckskin Mining Company and Peabody Energy, Inc respectively. WECNA continues to make progress towards completing permit applications for the Buckskin and Peabody projects and supporting necessary engineering and design changes that are necessary for compliance with American standards. For these first two projects, WECNA expects to file permit applications with the relevant regulatory bodies in 2010.

Bucksin Project, North America

White Energy’s wholly owned subsidiary, White Energy Coal North America, Inc. (“WECNA”), has entered into agreement with Buckskin Mining Company (“Buckskin”), a wholly owned subsidiary of Kiewit Group, to enable WECNA to develop coal upgrading plants at Buckskin’s mine in Gillette Wyoming. The plant will have an initial capacity of 1 million tonnes per annum but the parties intend to expand the capacity to 8 million tonnes per annum. The Buckskin Mine produces in excess of 27 million tons of sub-bituminous coal annually, and since 1981 has shipped more than 285 million tons of high quality, low quality coal from the Southern Powder River Basin. White Energy will own 100% of the Buckskin project.

Peabody Project, North America

White Energy and Peabody Energy, Inc. (Peabody) have entered into a development agreement to pursue the development of coal upgrading opportunities at Peabody’s Caballo Grande Mine in the Powder River Basin near Gillette, Wyoming. The project will be constructed in phases with an initial capacity of 1 million tonnes per annum, expanded to 20 million tonnes per annum over a five year period. Peabody Energy is the world’s largest private sector coal company, with 2008 sales of 256 million tonnes of coal, translating into US$6.6 billion in revenues.

The Development Agreement outlines the commercial framework under which White Energy and Peabody will jointly explore the development of coal upgrading projects and provides for other rights and obligations, namely:

* Joint venture company to be established 55% owned by White Energy and 45% owned by Peabody;
* White Energy is to supply the joint venture with technical, construction and engineering expertise and Peabody to supply feedstock coal and marketing expertise.

River Energy Joint Venture, South Africa (51% White Energy and 49% Black River

Having identified the adjacent opportunity for the beneficiating and briquetting of thermal coal fines in Africa, White Energy established River Energy JV Company Pty Limited (“River Energy”). River Energy is a joint venture established by White Energy and Black River Asset Management (“Black River”), a wholly owned subsidiary of the Cargill Group. Black River is a private equity fund that seeks to identify alternate investment opportunities for its shareholders.

The River Energy joint venture merges White Energy’s technical, design and operational skills with Black River’s investment acumen and transactional expertise. River Energy will seek to commercialise opportunities in the African coal mining industry that leverage the BCB technology.

China

China is the world’s most populous country and currently the second largest energy consumer after the United States. Chinese demand for energy is forecast to grow at 4.4% p.a. through to 2020, with much of this increase in demand to be satisfied by the domestic coal supply. Demand for coal, on which China relies for ~70% of its energy needs, has grown at more than 12% per annum since 2001, translating into approximately 2.4 billion tonnes of annual coal consumption.

Demonstration Plant – Cessnock, NSW

White Energy completed the construction and commissioning of the Cessnock demonstration plant in financial year 2009. The demonstration plant is a very useful facility for White Energy whereby we can test the responsiveness of different coal samples form around the world to the BCB Process and create a ‘centre of excellence’ for training purposes. The Cessnock demonstration plant allows White Energy to test and analyse coal samples from our potential partners as well as train and educate White Energy staff with respect to commissioning and operating our plants – all without disrupting our commercially operating facilities.

Mine For

coal

Location of operation(s)

Australia, Indonesia, the United States, Africa, Chin

Address

Level 20, 201 Kent St
SYDNEY, NSW, AUSTRALIA

Phone

(61 2) 9959 0000

Email

Website

http://www.whiteenergyco.com.au/

Last Updated

19/01/2011