White Energy enters coal deal with China Guodian Group

White Energy Company (ASX: WEC; OTCQX: WECFY) has inked a non-binding heads of agreement with state owned Guodian Inner Mongolian Energy Sources Co Limited to develop a coal upgrading facility in China.

Guodian is a part of the China Guodian Group, one of the leading integrated players in the Chinese coal mining and power generation sector with 70,250 MW of installed thermal power and a controllable coal resource of 15 billion tons with annual coal production of 25 million tonnes.

The group is one of the five largest power producers in China.

The JV agreement is for White Energy and Guodian to form a joint venture company to build and operate a coal upgrading facility with an initial capacity of 1 million tonnes per annum.

Following the successful commissioning of the first 1 million tonne per annum plant, development would increase the capacity of the project to 5 million tonnes per annum.

White Energy China would hold a minority stake (35%) in the joint venture company, contributing  its intellectual property and technical ‘know-how’ for each coal upgrading plant built by the joint venture company. 

Guodian will be the majority shareholder in the venture (65%) and would be responsible for funding all of the capital costs associated with each coal upgrading plant built by the joint venture.

White Energy has the exclusive worldwide license for the Binderless Coal Briquetting process that upgrades lower rank coal to significantly increase its energy efficiency and lower emissions.