Tests showed a deposit of bituminous coal with high volatiles, low ash, and good calorific value suitable for export. However, Asia Energy will need to install a state-of-the-art coal processing plant, utilising proven dense medium separation technology, to extract economic quantities of semi-soft coking coal and PCI grade coal, as well as export quality thermal coal.

“The engineering studies of run-of-mine coal handling, process plant requirements, and product handling at the project’s planned mine and port are being expanded accordingly,” Asia Energy said.

“Similarly, changes are required to the definitive feasibility marketing study to take account of the potential to mine these higher value products.”

Sydney-based AME Mineral Economics will provide an analysis of existing and future markets for coal products from the project.

Asia Energy will now conduct additional core sampling of larger diameter drill holes to determine the process equipment requirements, potential product mix and comprehensive coal quality specifications for the planned coal production.

Mine production is scheduled for 2007 with projected annual output of 15 million tonnes.