White thinks big in Indonesia

AUSTRALIAN-based White Energy has completed construction of the first 1 million tonne per annum clean coal upgrading modular plant at Bayan’s Tabang mine in East Kalimantan, Indonesia.
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Courtesy White Energy.

Angie Tomlinson

The plant uses White’s Binderless Coal Briquetting clean coal upgrading technology.

Commissioning is now well underway and production at the plant is expected to ramp up to full capacity and begin exporting over the next six months.

Through joint venture company PT Kaltim Supacoal (KSC), the project allows White to capitalise on the price spread between low-energy, high-moisture sub-bituminous coals and much higher energy value bituminous coals.

“The estimated average cost of production of upgraded BCB coal is lower than the mining costs for most global thermal coal producers. This positions KSC as a low-cost producer of thermal-grade coal that is cleaner to transport, handle and combust, with less residual waste than traditional bituminous thermal coal,” White said.

The company expects the upgraded coal will fetch a similar or premium price to conventional high-rank thermal coals.

White and Bayan are currently in discussions to arrange debt facilities to assist with the accelerated rollout of additional plants.

The two companies have agreed to significantly expand the capacity of the existing joint venture in Indonesia from 5Mtpa to 15Mtpa and White has committed to prioritise new plants under the venture over others in the country.

“Whereas White Energy has successfully built and operated other BCB plants at various locations, the significance of this project is the fact it will be our first full commercial production, large-scale operating plant, providing the first steady revenue stream to White Energy,” CEO John Atkinson said.

White Energy closed up 1.3% yesterday to $A1.52.

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