The company reported a cash loss for the six months to December 2009 of $8.7 million after taking into account costs of $4.9 million related to the failed merger transaction with Asia Special Situation Acquisition Corp and other non-cash and one-off items of expenditure.

The net cash loss includes costs related to a $100 million capital raising in November and business development activities, the management of specific projects, research activities on cleaner coal technologies and interest expense on convertible notes.

White Energy’s revenue was $1.4 million compared to $1.58 million for the previous corresponding half-year period.

The commissioning of the 1 million tonne per annum Binderless coal briquetting 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.

During the six months, White, through its 51%-owned Indonesian subsidiary KSC, mandated Standard Chartered Bank to provide a project financing facility to underpin the expansion of the Tabang project from 1Mtpa to 5Mtpa.

The core elements of KSC’s BCB coal upgrading plant have been trialled, are functional and at this stage are able to produce upgraded coal at approximately 300,000tpa (30% of nameplate capacity).

Services including the plant’s dust extraction system required some modification and upgrading to enhance the overall performance and enable the plant to run at its nameplate capacity. Solutions have been identified and are being implemented.

White decided that the critical goal for KSC, prior to installation of the necessary modifications, was to sell and ship its upgraded product into the market.

To facilitate this, the company will continue to run the plant at its current capacity for the rest of the financial year.

“This approach minimises any disruption to current operations and will enable KSC to complete necessary stockpile, handling and transportation testing of its upgraded coal product and then sell test burn quantities of coal into the Asian market,” White said.

“Thereafter the plant will be shut down for a three-week period to complete the modification work to the dust extraction system.

“Once the upgrading of the dust extraction system is completed, there will be an incremental build-up to full production thereafter.”

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.

Permits for both these projects are expected to be submitted by mid-2010. In addition, the company is working with the state of Kentucky in analysing the possibility of building a BCB plant there.

“The necessary permit application work has been completed and will be filed by the company in mid-March 2010,” White said.

“If a permit is granted to the company’s satisfaction, it will then determine whether it proceeds with this initiative. Critical to this decision will be any financial incentives offered to the company and the final economic feasibility of the proposed venture.”

The company also continued research and development activities at its Cessnock production plant during the half-year, including the processing of coal samples from several potential business partners.