WHITE ENERGY COMPANY LIMITED White Energy Company Limited
For personal use only
White Energy Company Limited
Mining Exploration Entity Quarterly Activity Report
and
Appendix 5B
December 2021
Page 1 of 11
For personal use only
White Energy Company Limited
Quarterly Activity Report December 2021
SUMMARY OF ACTIVITY
A summary of the major items of activity for White Energy Company Limited ("White Energy", "WEC" or the "Company") during the quarter ended 31 December 2021 is outlined below.
HIGHLIGHTS
- Tranche Three judgement reserved for the litigation proceedings against Bayan Resources Tbk
- Yankuang Group is investigating the use of BCB technology in China
- River Energy is pursuing opportunities for BCB projects in South Africa
- Surveys of iron oxide-copper-gold targets conducted in South Australia
1. AUSTRALIA
South Australia - EL6566 (previously EL5719) and PELA674
During the quarter, work continued on examining coal gasification and emerging hydrogen opportunities from coal.
Baseline surveys commenced in December for iron oxide-copper-gold styles of mineralisation that are targeting a new zone of interest in the magnetic corridors of the Hilga Mineral Field and historical anomalies from calcrete sampling programs completed in 2012-2013 and 2018. The geochemical analysis using biochemical (predominately leaf), calcrete and soil sampling has commenced, and further target areas are planned for survey in 2022.
Capital expenditure related to exploration activities of $38,000 was incurred during the quarter.
BCB
WEC is investigating the implementation of its BCB technology for use in Yankuang Group's coal briquetting business in China. Testing of coals from Shandong and Shanxi Provinces has been successfully conducted at WEC's test facility in Cessnock and the Company's briquetting machines were used for larger scale tests in China. Yankuang Group constructed a small pilot plant in Shandong Province using WEC's patented BCB technology, and this is the first step in commercialisation of the technology in China.
Following discussions with the Yankuang Group, design of a 200,000 tonnes per annum BCB plant for a mine site in Shanxi Province has been completed. The contract for construction of the plant that is funded by the customer under White Energy's design and engineering supervision has not been finalised yet. It is hoped the contract will be finalised when the travel restrictions imposed for COVID- 19 are eased and the WEC engineers are able to visit the plant site in China. Yankuang's interest was in briquetting fine wet coal with a small addition of calcium carbonate to reduce sulphur emissions to sell to civil and domestic customers. The Company has been advised that there is a move away from this concept due to other environmental factors. However, there remains a significant opportunity for the briquetting of fines in China, particularly for semicoke plants.
Page 2 of 11
For personal use only
White Energy Company Limited
Quarterly Activity Report December 2021
2. AFRICA - RIVER ENERGY JOINT VENTURE - WEC 51%
White Energy's 51%-owned subsidiary, River Energy JV Limited, through Proterra Investment Partners (Proterra, 49%), is in discussion with a number of South African coal miners interested in the Group's Binderless Coal Briquetting (BCB) technology.
Extensive testing by River Energy, including successful briquetting and combustion trials, has previously demonstrated that a saleable export grade coal product can be produced from South African reject tailings. Proterra is pursuing opportunities, from their offices in Johannesburg, on mine sites in South Africa to secure access to fine coal to support BCB projects.
Using the BCB process, a briquetted 6 tonne sample of fines from a mine in the Middelburg region has been successfully tested by a South African power producer. A further bulk sample of up to 50 kt has been requested to carry out a commercial scale trial. White Energy is assisting Proterra in the design of a small demonstration plant to facilitate this work and other trials in South Africa.
The BCB process provides an attractive solution for coal producers seeking to maximise mine yield and facing the environmental challenges posed by reject coal fines. In South Africa alone, it is estimated that there are over 1 billion tonnes of discarded coal in tailings facilities, much of which may eventually need to be reclaimed.
3. GENERAL CORPORATE
The Company has no secured corporate debt. Limited-recourse shareholder loans provided to the Group's 51% owned operations in the UK and Mauritius by both White Energy and the minority shareholders in proportion to their ownership interests are repayable in January 2025.
As outlined in Section 6 of the Appendix 5B, directors' fees and salaries including superannuation paid during the quarter to Directors and their associates totaled $77,000.
Proceeds from the Group's sale of its interest in Mountainside Coal Company are being progressively received. Further instalments of $2.6 million are to be paid over the next two quarters, and these payments have been delayed due to the new owner completing their finance arrangements.
COVID-19 Update
White Energy continues to maintain appropriate measures to ensure the health and safety of its employees, contractors and the public, in compliance with government directives on COVID-19. Operations are continuing normally, although progress on BCB projects has been slowed due to travel restrictions affecting our key potential customers, particularly in China.
PT Kaltim Supacoal ("KSC") - WEC 51%
White Energy is engaged in legal proceedings in the Singapore International Commercial Court ("SICC") initiated by subsidiaries of White Energy, BCBC Singapore Pte Ltd ("BCBCS") and Binderless Coal Briquetting Company Pty Limited, against PT Bayan Resources Tbk and Bayan International Pte Ltd (collectively, "Bayan") in connection with the KSC joint venture.
The third tranche of the proceedings was heard by the SICC from 21 to 30 September 2020 during which cross examination of witnesses from both sides was completed. Written closing submissions were filed and exchanged on 19 November 2020 and replies were filed and exchanged on 10 December 2020. The final oral submissions from the parties' legal representatives were made on 9 January 2021. The judgement is reserved, and the Company's legal representative anticipates that this will be issued in the near future.
Page 3 of 11
For personal use only
White Energy Company Limited
Quarterly Activity Report December 2021
The only issues remaining to be determined by the SICC in the third tranche relate to the damages which may be payable to BCBCS. The SICC has, in the earlier tranche of the proceedings, already made a conclusive determination that Bayan has both breached and repudiated the joint venture deed.
The claim for damages can be broadly summarised as follows:
- BCBCS claims for wasted expenditure, being expenses incurred by BCBCS which were rendered futile by reason of Bayan's breach and repudiation of the joint venture;
- Further, BCBCS claims for loss of the chance of expanding the capacity of the joint venture to at least 3 million tonnes per annum; and
- Interest on damages award and legal costs.
4. INTERESTS IN MINING TENEMENTS
Below is a listing of the Company's interest in mining tenements, where they are situated and the percentage interest the Company holds in each.
The Company and its subsidiary hold an interest in the following mining tenements:
Tenement | Locality | Licensee | Interest |
Coal Exploration | |||
Licence and | |||
Retention Lease | |||
EL6566 and | Lake Phillipson, South Australia | South Australian Coal Pty Ltd | 100% |
RL104(a)
Petroleum
Application
PELA674Lake Phillipson, South Australia White Energy Company Limited100%
(a) The renewal of RL104 has been applied for and is pending.
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White Energy Company Limited
For personal use only
Rule 5.5
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity | |
White Energy Company Limited | |
ABN | Quarter ended ("current quarter") |
62 071 527 083 | 31 December 2021 |
Consolidated statement of cash flows | Current quarter | Year to date (6 | ||
$A'000 | months) | |||
$A'000 | ||||
1. | Cash flows from operating activities | |||
1.1 | Receipts from customers | 36 | 141 | |
1.2 | Payments for | |||
(a) | exploration & evaluation | - | - | |
(b) | development | (41) | (68) | |
(c) | production | - | - | |
(d) | staff costs | (374) | (760) | |
(e) administration and corporate costs (*) | (544) | (959) | ||
1.3 | Dividends received (see note 3) | - | - | |
1.4 | Interest received | 1 | 1 | |
1.5 | Interest and other costs of finance paid | (4) | (9) | |
1.6 | Income taxes paid | - | - | |
1.7 | Government grants and tax incentives | - | - | |
1.8 | Other (provide details if material) | 27 | 60 | |
1.9 | Net cash from / (used in) operating | (899) | (1,594) | |
activities |
- Includes legal fees incurred in respect of KSC dispute.
2. Cash flows from investing activities
2.1 Payments to acquire or for:
(a) entities
(b) | tenements | - | - |
(c) property, plant and equipment | (1) | (11) | |
(d) | exploration & evaluation | (24) | (76) |
ASX Listing Rules Appendix 5B (17/07/20) | Page 5 of 11 | ||
+ See chapter 19 of the ASX Listing Rules for defined terms. |
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White Energy Company Limited published this content on 31 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 January 2022 05:40:03 UTC.
