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Monday, 19 April 10
WHITE ENERGY BUYS SA COAL - ABC NET


ABC Net reported that, South Australian Coal Limited is being bought by the New South Wales company White Energy.

Shareholders will get a combined $39 million worth of White Energy shares as a result.

The deal will give White Energy access to a large coal resource at Lake Phillipson, about 60 kilometres south of Coober Pedy in South Australia's far north.

Managing director of White Energy John Atkinson says shareholders in South Australian Coal Limited are reinvesting $100 million back into White Energy, which it will add to its overall funds.

"The key figures in the South Australian coal company are putting their money where their mouths are and that'll give White Energy in excess of $200 million and we'll then use funds to exploit the opportunity at Lake Phillipson and also exploit the opportunities in other coal markets," he said.

Mr Atkinson says a process will also upgrade the Lake Phillipson coal so it can be exported.

"That process takes high-moisture coal and effectively reduces the moisture content and creates a high-energy and high-value thermal coal out of what started as a high-moisture low-energy coal," he said.
Source: ABC Net



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