River Energy South Africa, 51% owned subsidiary of White Energy Company has signed a binding agreement with Blue Falcon 212 Trading, the owners and operators of the Woestalleen Colliery to build, own and operate a standalone Binderless Coal Briquetting.
Along with 250,000 ton per annum plant , the agreement also facilitates River Energy to purchase all existing coal fines, located in tailings dams, along with new arising coal fines produced in the 3 washplant modules processing run-of-mine coal at the colliery, over the life of the project.
The agreement requires the company to adopt two-phased model for the project with initial phase involving the building, owning and operating a coal plant at the Woestalleen Hub utilizing the screening technology for which it has exclusive rights in the African coal market.
The company will also purchase all new arising coal fines produced at the Woestalleen Hub, for a period of 5-year, as raw material to the plant and sell the beneficiated product to the site operator at a market-linked price.
River Energy will be liable to pay $1.2m following the completion of first phase, an additional $1.2m would be paid by the company after satisfactory phase 2 conditions. The coal miner will have 12 months to commit to second phase.
During the Phase 2, River Energy will secure exclusive access to all coal fines currently stored in tailings dams at the Woestalleen Hub, and all new arising coal fines to be produced in the future, and also commit to the construction and commissioning of a BCB plant at the site.