If the $A250,000 six-month option is exercised, Amerod will acquire White subsidiaries Binderless Coal Briquetting Company and Coking BCB (BCBC). White Energy has valued BCBC at $A15.5 million.

BCBC coal technology results in significant cost benefits in coal transportation and processing. BCBC is currently in commercial negotiations to exploit the technology in China, USA, Indonesia and South Africa.

The company recently executed a Heads of Agreement with one of China’s largest energy companies, Datang International Power Company, to form a joint venture to use the technology in China.

Datang plans to construct a number of the specialist coal briquetting plants, initially each with a capacity of 10 million tonnes per annum.

The BCBC technology creates closer bonding between coal particles to produce higher energy coal that burns more efficiently - creating cost benefits and reducing greenhouse gas emissions. The briquetting process also reduces the moisture content of coal and at the same time minimises the risk of spontaneous combustion, enabling coal to be transported more efficiently, thereby lowering transportation costs.