The UK-based company, which has more than 30 years’ experience in recovering contaminated coal, would retain the technology risk and would be paid through a tolling rate under the agreement, it said.

RecyCoal’s patent protected system produces export quality coal from coal seam cleanings, clay-contaminated, banded and heat-affected coal in a magnetite-free washing process that uses plate and frame filter presses to eliminate the need for tailings dams.

RecyCoal chief executive Tom Allchurch said the operation was a fast, efficient and environmentally positive process for recovering the coal often left behind.

“Most mining projects encounter coal contaminated with high quantities of dirt that are difficult to recover with conventional washing technology,” Allchurch said.

“The RecyCoal technology and service can recover this coal with little or no financial risk to the mining company.”

Allchurch said by recovering coal currently discarded to increase sales volumes, RecyCoal could help mines maintain profit margins in a period when coal prices had reduced substantially.

The business had improved mine profitability and sustainability solutions to some of the world’s largest coal projects, he said.

Over a period of 18 years, RecyCoal processed in excess of 150 million tonnes of coal from British Coal’s Selby mine which, on commencement, was the largest deep mine project in the world.

It has already started its assessment of Australian mines to analyse various coal recovery projects which Allchurch said were perfectly suited to its technology.

“Australian geological conditions can be pretty tough as coal is often exposed to clay in the Surat Basin, igneous intrusions in the Bowen Basin and dirt contamination in all the coalfields,” he said.

“But our technology is practical and effective, extracting coal from the most difficult, dirty feed that would foul and slime most dense medium systems.”