JOHANNESBURG (miningweekly.com) – ASX-listed Environmental Clean Technologies (ECT) has reached an agreement with Indonesian coal mining company Ilthabi Bara Utama (IBU) to start initial testing work on low-rank coal samples from IBU’s East Kalimantan mine for its suitability in the use of the Coldry process.

ECT said the Coldry process was the world’s first economic method for dewatering brown coal, creating a high-energy pellet with significantly reduced carbon-dioxide emissions when compared with brown coal, while being suitable for export as a black coal substitute.

ECT CEO Kos Galtos noted that following the completion of the necessary testing, a business case would be developed with a view of moving to a heads of agreement, if all tests proved successful.

“IBU can provide sufficient coal supply to meet current and future coal requirements for over ten-million ton a year Coldry production plant. The opportunity to access such a large resource in Indonesia will provide the Coldry plant with a key footprint into the South East Asian market, where there are a large number of coal-fired power stations, and consequently, a huge market for the final product.”

IBU controls over 3,3-billion tons of Joint Ore Reserves Committee compliant resources, which is expected to double upon further exploration. The company has also closed a $135-million privately-arranged equity-linked note financing facility for mine development.

The mine was currently producing up to two-million tons a year, and there were plans to ramp up production to between ten-million tons a year, and 15-million tons a year, within the next 24 months.

“It is IBU’s intention to enter into a joint venture partnership with ECT to construct a Coldry plant in East Kalimantan and to provide enough coal at an agreed price for at least a ten-million ton a year plant,” Trevor Butcher said.

Testing on the first samples of coal would be carried out to enable the development of an acceptable business model, before moving to a heads of agreement.

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