Redar Iron identifies DSO iron ore targets at Jackson and Boondine projects

It is reported that Radar Iron is about to ramp up news flow across several of the company's projects.

The latest positive news is that iron ore targets have been identified from an aeromagnetic survey which includes an additional 20 kilometres of magnetic responses.

The survey was over the Die Hardy, Boondine and Jackson projects which are located in the Southern Cross district of Western Australia which comprised 8,300 flight line kilometres.

The outcome is that several areas of direct shipping ore mineralisation have been defined at the Jackson and Boondine projects.

At Die Hardy which is the initial main magnetite target for Radar the data highlighted new untested magnetic units to the north and north west of the existing drilling indicating a combined strike length of 4 kilometres.

Magnetic modeling for all the recently acquired data is currently underway, with ground reconnaissance of potential anomalies kicking off this month, and following drilling approval, drill testing is expected to commence in early 2012 at the high priority targets.

In total Radar holds around 1200 square kilometres of tenements in the Yilgarn Iron Ore Province, with 120 kilometres of banded iron formations which are largely unexplored for iron ore.

Mr Jon Lea MD of Radar told Proactive Investors today that a 3000 metre reverse circulation drilling program will kick off next month at the Johnston Range project.

The project is significant for Radar with around 20 direct shipping ore targets having already been identified, which Lea said have the potential to host 2Mt to 5Mt hematite deposits in pods.

Johnston Range hosts 40 linear kilometres of banded iron formation, and has the potential to deliver a JORC Resource in the short term.

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Queensland Galilee Basin could generate 6000 jobs

It is reported that a new coalmine in central Queensland Galilee Basin could generate 6000 jobs during construction and 1500 places during the mine life.

More details on Waratah Coal USD 8.3 billion Galilee Coal project became available recently when the company released its environmental impact statement. The project involves a series of new thermal coalmines near Alpha, west of Emerald a 468 kilometer railway from the mine to the coast and a port at Abbot Point, north of Bowen.

Mr Rachel Nolan acting Development Minister said ''If the Galilee Coal project proceeds, it could generate around 6000 jobs during construction and 1500 jobs during the operational life of the mine which is expected to exceed 25 years.”

Mr Keith Davies Co-ordinator-general said community concerns about the impact of the railway would be looked at along with formal submissions when considering the project.

Premier Ms Anna Bligh said the project presented another big leap forward for Queensland's economy, provided the company met all environmental impact requirements. She said ''The Galilee Basin is a very rich coal seam. If it can be developed appropriately, then it means jobs, prosperity and growth, and a very bright future for our state.”

The project impact statement will be available for public comment until November 7. The proposed port at Abbot Point will be subject to a separate approval process.

(Sourced from www.brisbanetimes.com.au)

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Zimbabwe deadline for foreign firms looms

It is reported that foreign companies operating in Zimbabwe had until Sunday to hand in plans to sell majority stakes to local blacks under a law that has alarmed investors who are uncertain how the rules will work.

The government order for the transfer of 51% ownership has been called the final phase of economic emancipation after controversial land reforms targeting white owned farms a decade ago. But analysts are skeptical.

Mr Anthony Hawkins a University of Zimbabwe economics professor said "There is no way the local and the government has the money to buy shares in the companies. Everybody knows that."

He said that the indigenization drive could hurt the economy in the same way as the land reforms which sparked an economic nose-dive after supporters of President Mr Robert Mugabe violently seized white-owned farms.

Mr Hawkins about polls expected next year said "My concern is that this is much more of a political policy and it will have an economic harm just like the land reforms. It looks like they are doing this for the elections."

He said that "This will reduce the amount of investment in the country as the new owners will not have the money to, for example, expand projects. The community does not have the money, as well as the workers and the government is broke."

The push is without the violence of the land seizures which Mr Mugabe said was a way to correct colonial-era wrongs, but there is mixed signals on how the law will be implemented.

Mr Saviour Kasukuwere Indigenization Minister has warned that non-compliant companies risk nationalization. But certain firms have arranged their own deals and deadlines ahead of Sunday cut-off date making the government appear flexible on how the law is implemented.

(Sourced from AFP)

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Mongolia high plains herders warily eye coal truck road

Reuters reported that a lone cement ribbon bisecting hundreds of miles of shale and scrub on the high plains of Mongolia Gobi Desert may be a talisman or curse for nomadic herders that trace their lineage to the empire of Mr Ghengis Khan.

Carved into the Gobi by the Hong Kong listed Mongolian Mining Corporation the 147 mile and two lane roads is due to open next month, allowing the company to speed up cargoes of coal to China from its expanding Ukhaa Khudag mine.

The freshly paved highway is one of the first glimpses of a mining boom that will transform Mongolia fortunes. But many including President Mr Tsakhia Elbegdorj are worried that mining has already put the country fragile pastoral economy under strain and left a million nomads behind.

Mr Puntsag Tsagaan president senior adviser said "Hundreds of rivers, streams and lakes have disappeared because of deforestation, climate change and also partly because of irresponsible mining."

He said that "Our challenge is how to diversify our economy. I don't want my children and my grandchildren to live in a different country called Minegolia it has to be Mongolia. Therefore we have to manage the mineral wealth in a better way."

The road will remove a major logistical hurdle for MMC.

Mr Adilbish Gankhuyag MMC's chief financial officer said "We will start using it next month and it will have a total throughput capacity of about 18 million tonnes per annum this year our total production will be 7 million tonnes so we no longer have logistics and transportation problems."

Mr Shurka Baigalmaa MMC's onsite manager at Ukhaa Khudag said it is also a key part of the company commitment to protect the region's ecosystem which has been damaged by hundreds of overloaded coal trucks churning up grazing land.

MMC is also committed to using the parched region water supplies efficiently with Baigalmaa saying that 95% of water used at the mine washing plant would be recycled.

The open-cast mine is already 70 metres deep and will eventually descend 300 metres but she said the company would limit the impact by refilling exhausted seams using peat excavated from new mining areas further west.

(Sourced from Reuters)

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Avonlea Minerals appoint Non Executive Chairman

Avonlea has appointed Mr David Macoboy as Non Executive Chairman effective immediately.

Mr Macoboy brings to the Board a wealth of experience across a range of industries especially in the areas of corporate strategy, finance, project evaluation and development, and management. Mr Macoboy has over 20 years in the resources sector joining Avonlea following roles at Board level with a range of successful ASX listed exploration and mining companies.

Mr David is currently Non-Executive Chairman of Vital Metals Limited, and has held previous Directorships with Ammtec Ltd, Ironclad Mining Limited, Grange Resources Limited, Territory Iron Limited and Consolidated Minerals Limited.

Mr Macoboy holds a Bachelor of Economics and a Bachelor of Commerce from the University of WA. David is a Fellow of the Australian Institute of Company Directors and a Certified Practicing Accountant.

Mr David Riekie Avonlea Managing Director said "We welcome Mr Macoboy as a valuable addition to the Avonlea Board. His extensive corporate and resources experience provides a complementary skill set to the existing Board. Mr Macoboy joins the Company at a pivotal time in the Company's growth as we continue to develop our portfolio of projects in Namibia, and will assist to drive our corporate agenda to realize the full potential of our asset base."

Mr Roger Steinepreis will as a consequence step down as Chairman, but will remain a Non-Executive Director of the Company. The Board thanks Roger for his significant contribution to the Company in his capacity as Chairman since listing on the ASX in 2007.

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US coal units to retire as EPA tightens rules

(Sourced from Reuters)
Reuters has made a partial list of US coal plants that energy companies expect to retire in the coming years. Some units may be converted to burn alternative fuels or be replaced with natural gas fired generation.

OWNER	UNIT	SIZE	STATE	DATE TO SHUT
Exelon	Cromby Units 1,2	345	PA	31-May-11
Exelon	Eddystone Units 1,2	588	PA	31-May-11
AEP	Phillip Sporn	450	WV	2011
TVA	Shawnee Unit 10	124	KY	2011
Duke	Cliffside 1-4	198	NC	2011
Duke	Buck 3 and 4	113	NC	2011
AES	Greenidge	156	NY	c2011
AES	Westover	128	NY	c2011
TVA	Widows Creek 1-2	282	AL	Late 2011
TVA	John Sevier Unit 1,2	352	TN	2012
Duke	Edwardsport	160	IN	2012
Duke	Dan River 1-3	276	NC	2012
GenOn	Potomac River	482	VA	Oct-12
Progress	H.F. Lee	397	NC	2013
Black Hills	W.N. Clark	42	CO	By 2013
Progress	Weatherspoon	172	NC	2013-2017
Progress	Sutton	600	NC	2014
Duke	WS Lee	370	SC	2014
Dominion	Salem Harbor	738	MA	2014
Duke	Wabash River 2-6	668	IN	2014
AEP	Glen Lyn	335	VA	31-Dec-14
AEP	Kammer	630	WV	31-Dec-14
AEP	Kanawha River	400	WV	31-Dec-14
AEP	Phillip Sporn	600	WV	31-Dec-14
AEP	Picway Plant	100	OH	31-Dec-14
AEP	Big Sandy 1,2	1078	KY	31-Dec-14
AEP	Clinch River 3	235	VA	31-Dec-14
AEP	Conesville 3	165	OH	31-Dec-14
AEP	Muskingum River 1-4	840	OH	31-Dec-14
AEP	Tanners Creek 1-3	495	IN	31-Dec-14
AEP	Welsh 2	528	TX	31-Dec-14
Dominion	North Branch	74	VA	Late 2015
Duke	Riverbend 4-7	454	NC	2015
Duke	Buck 5-6	256	NC	2015
Dominion	Yorktown 1-2	323	VA	2015
TVA	Widows Creek 3-6	564	AL	Late 2015
TVA	Johnsonville 1-6	794	TN	Late 2015
Dominion	Chesapeake 1-4	595	VA	2015-2016
PPL's LG&E	Cane Run	563	KY	2016
PPL's LG&E	Tyrone	71	KY	---
PPL's LG&E	Green River	163	KY	2016
TVA	Johnsonville 7-10	692	TN	Late 2017
Dominion	State Line	515	IN	By mid-2014
Progress	Cape Fear	316	NC	2017
Xcel	Cherokee 1-4	1069	CO	By 2017
Xcel	Arapahoe 3,4	156	CO	By 2017
Xcel	Valmont	186	CO	By 2017
CPS Energy	Deely	871	TX	2018
PGE	Boardman	585	OR	2020
Centralia	TransAlta	688	WA	2020
Centralia	TransAtla	688	WA	2025
APS	Four Corners 1-3	560	NM	---
		22230

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CIL maintains stand on bonus issue

Press Trust of India reported that Coal India stands firm on its decision of bonus payment to the workers despite their threat of a one-day strike on October 10.

Mr NC Jha Coal India Chairman said "There is no plan to review the bonus offer from us."

He said if the unions go ahead with the strike, the miner would lose 0.8 million tonne to 1 million tonne in coal production, while the revenue loss would be INR 120 crore.

Coal unions have said they'll go on a strike across mines including in Singareni Coal Companies, if their demand for a minimum INR 25,000 bonus is not accepted by the management. CIL on the other hand has offered INR 17,000 against INR 15,000 offered last year.

With the company registering a shortfall in production in August and September due to rains, the strike would make it difficult for the company to meet the projected production target of 452 million tonnes for the current fiscal.

Meanwhile, Mr Alok Perti Coal Secretary while addressing the seminar said there is need for simplification of the procedures in acquisition norms to help the PSUs in buying overseas energy assets.

He said that "Time is essence. In this aspect, private sector has an advantage over the PSUs to take quick decisions," he said.

CIL in the past has failed to act swiftly due to procedural hindrances and some of the overseas coal assets went to other bidders.

(Sourced from Press Trust of India)

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Global Earth Energy announces closing date of coal properties

Global Earth Energy Inc announced that its partially owned Canadian company, Global Earth Natural Resources Inc which trades on the Frankfurt Stock Exchange under the symbol 2GN, 2GN: GR on the Bloomberg quote system, a co-owner along with Modern Coal, LLC of Global Earth Natural Resources LLC a Texas limited liability company, has set a closing date of mid September for its acquisition of the Samuel Coal properties in Knott County, Kentucky. Permitting has been received on all three of its initial locations and Global Earth Natural Resources, LLC expects to begin mining operations immediately after closing the acquisition.

Global Earth Energy, Inc Global Earth Natural Resources LLC and Modern Coal, LLC plan to expand the workforce needed for the Kentucky operations of Global Earth Natural Resources, LLC and have begun accepting resumes for various positions. The total need for new hires is expected to be approximately 100 people. Global Earth Natural Resources, LLC is looking for personnel experienced in tipple operations or related experience in the transport and loading of coal, shift supervisors, mechanics, bookkeepers and security and safety personnel.

Modern Coal, LLC and Global Earth Energy Inc wish to express their thanks to Congressman Hal Rogers, US Representative from Kentucky 5th Congressional district, for his support and encouragement as Global Earth Natural Resources, LLC completes its acquisition of the Kentucky coal properties helping bring new jobs to Knott County and his steadfast support of Kentucky's coal producers.

www.steelguru.com

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Science City to establish mining investment JV

It is reported that Science City Development Public plans to establish a mining investment and development joint venture with Hainan Xinde Taisheng Investment Management and Shouyi Venture Capital.

The joint venture, Yintai Shengda Mining Investment Development, will have a registered capital of CNY 100 million of which CNY 51 million will be borne by Science City in return for a 51% stake.

Science City released its assets restructuring plan in July. It had planned to swap out its hotel assets for lead-zinc mining assets. The value of the target mining assets rose 14 fold in the past three years.

Shares of Science City had risen by their daily limits for two straight trading sessions from July 21. However, the stock then dropped continuously to CNY 7.5 at present.

(Sourced from Shanghai Securities News)

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Norway and Finland challenge Sweden dominance in mining

It is reported that Sweden e leading Nordic country when it comes to mining industry.

Norway is expected to introduce a 15 year state program on mineral research which will cost SEK 1 billion according to Sveriges Radio. The Norwegian mining industry has for a long time been in the shadow of the oil industry but the current high metal prices have changed the Norwegian government's view on this.

The Finnish government has made the same thing. In May it started a 5 year state financed mining research program which costs SEK 500 million.

(Sourced from www.steelguru.com)

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Beacon Hill suitor withdraws approach

Reuters reported that bid target Beacon Hill Resources a potential offer was withdrawn after for the coking coal producer confirmed it undervalued the group and its assets.

Beacon Hill said it continued to make good progress with the development of Minas Moatize a producing coal mine in the Tete Province of Northern Mozambique.

The company said in a statement that "Whilst equity markets have been volatile, coal prices have remained very strong and demand for security of supply of coking coal is at an all-time high."

On August 26, Beacon Hill snubbed an early stage takeover proposal of 142 million pound from a third party saying it undervalued the company.

Beacon has two primary assets the Minas Moatize coal mine in Tete, Mozambique and Tasmania Magnesite NL in Tasmania, Australia.

(Sourced from Reuters)

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Mr Lindsay favors coal mine expansion as mergers booms

Teck Resources Ltd the world second largest exporter of coal used in steelmaking focused on expanding its Canadian operations without acquisitions, even as the volume of transactions in the industry rises to the highest level in at least 12 years.

Mr Don Lindsay CEO of Teck Resources said "For us, it makes far more sense to build than to buy. It may be boring from an external point of view that there aren't lots of transactions, but it works."

Teck plans to step up the pace of extraction from the more than 5.5 billion tonnes of coal deposits it holds in Alberta and British Columbia. Mr Lindsay said building capacity in western Canada is a cheaper way to add production than buying companies such as US miner Walter Energy Inc or Australia Macarthur Coal Ltd.

According to Bloomberg data there have been 56 pending or completed takeover bids for coal producers so far this year with a combined value of about USD 21.3 billion. They include Peabody Energy Corp and ArcelorMittal agreement last month to acquire Macarthur for AUD 3.64 billion. There were 70 deals worth about USD 16.4 billion in 2010.

Walter which also mines metallurgical coal in Canada rose 21% in New York trading on September 7 after the London based Times reported Anglo American Plc may consider a bid. Walter investor Audley Capital Advisors LLP said in July that company should explore a sale. Mr Lindsay said Teck isn't interested.

He said that "Two-thirds of the business is underground, long-wall o
perations. You've seen in their performance, the squeezes that they've had. Why would I want to get into that business?"

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China Shenhua Energy commercial coal output up 20pct in Aug

China Knowledge reported that China Shenhua Energy Co Ltd the country largest coal producer produced 27.3 million tonnes of commercial coal in August reflecting a YoY increase by 20.3%.

The Shanghai and Hong Kong listed firm commercial output swelled 26.2%YoY to 23.1 million tonnes. Coal sales amounted to 32 million tonnes up by 26.5%YoY.

Last month, the coal company sold 306 million tonnes of coal, 21.9% more than in August 2010. Of the total sales, 500,000 tons were exported plunging 44%YoY. In addition, China Shenhua Energy said its electricity output surged 34.6%YoY to 18,100 gigawatt hours in June and the firm power sales soared 34.6%YoY to 16,800 GWh in the month.

The Chinese coal producer reaped CNY 21.87 billion in net profit attributable
to shareholders in the first half of this year up by 16.1%YoY and its operating revenue for the first half surged 40.5%YoY to CNY 100.69 billion.
(Sourced from China Knowledge)

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Rio Tinto is holding an investor seminar in London and New York on September 20th 2011

1. Rio Tinto's growth program is well underway with work progressing on $ 27 billion of major capital projects, and a $35 billion pipeline of high quality, unapproved projects currently in the advanced-study phase.

2. Growth projects are well balanced between Brownfield expansion of existing assets such as iron ore in the Pilbara and newer, world class quality projects including coal in Mozambique and copper gold in Mongolia.

3. Rio Tinto's order books are full and commodity prices remain robust. However, customer sentiment is now more cautious and physical markets are softer than they were six months ago, reflecting concerns over the health of the OECD economies and persistent volatility in financial markets.

4. Rio Tinto's estimated net debt as at August 31st was $ 7.6 billion, a reduction of $ 1 billion since June 30. This has been achieved despite the accelerated share buyback program and continued investment in growth.

5. More than $ 4 billion of Rio Tinto's $ 7 billion share buy back program has now been completed.

Mr Tom Albanese CEO of Rio Tinto said that "We've been saying for quite some time that we expected to see patterns of increased price volatility amidst turbulent financial markets and that scenario is playing out. Our order books are full and pricing is strong, but it is noticeable that markets are somewhat weaker than they were six months ago. We are realistic and well positioned for any number of scenarios our high quality growth program is in full swing to capture the expected increases in longer-term demand, and our balance sheet is very strong and well able to withstand any near term decline. Our long term view of demand growth is unchanged. As the metal hungry developing economies grow, demand for copper, aluminium and iron ore will double over 15 to 20 years. But challenges on the supply side are limiting the speed of new supply to market. Project finance is tight because of the current market jitters. Permitting delays, labour and equipment shortages, and technically challenging ore bodies are all contributing factors. With Rio Tinto's exceptional growth projects in a range of countries and commodities, coupled with our leadership in new technologies, we are in an advantageous position."

Mr Guy Elliott CFO of Rio Tinto said that "Our balance sheet is robust, monthly cash flow generation remains high and we are able to access debt markets at competitive rates, as we demonstrated just last week with an attractively-priced bond issue. Our prudent balance sheet and single A credit rating are highly beneficial, particularly in challenging markets. This approach means we have been able to pursue our strategy of targeted acquisitions and shareholder returns without interruption, successfully completing the Riversdale acquisition in August."

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EastCoal gets access to new west block at Verticalnaya mine

A Canadian based company with coal assets in Ukraine, EastCoal Inc has announced that recent work at the main Verticalnaya anthracite mine has established that access to the new West Block in the west extension of seam H8 can be readily established.

The company said while access from the former mine into that area had been sealed off and was believed to be flooded, investigation of a ventilation drift has established that the access way is free of water.

Records indicate that the West Block of the H8 seam initially extends for approximately 2.5 kilometres along strike and three kilometers down dip. The Seam thickness is recorded in the region of 0.6 meters, which is less than for the other areas now being developed but can be mined with modern western equipment.

The company said that the potential of the West Block is significant in that, if developed, it could bring forward commercial production from the H8 seam by as much as 12 months and add to the overall production of the mine.

The company said an independent NI 43-101 compliant technical report is being commissioned to evaluate the coal resources in the West Block.

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Optimum Coal independent board reviews Glencore bid

Reuters quoted investors said independent directors at South Africa Optimum Coal are reviewing an expression of interest from Glencore and its local partner and share sales made to the suitors despite the absence of a formal bid.

Glencore, the world largest diversified commodities trader has been buying stock in OCH and earlier this month said it aimed to take a controlling stake in South Africa sixth largest coal producer alongside its partner politician turned-businessman Ms Cyril Ramaphosa. They have yet to make a formal offer.

Some investors expressed concerns that shares were sold to the suitors before the expression of interest was revealed. The deal would be Glencore most significant since its record share listing in May.

One shareholder said "The situation is still very fluid, adding it was unclear when the board would conclude the review and whether Glencore would in fact make a full bid and whether it would face political opposition.”

The independent board is charged with protecting the interests of all shareholders especially the community and employee trusts that own about 20% in the company.

An OCH spokesman said "It is often the case that an 'independent board' is set up to consider specific processes and decision making. The spokesman said there was no deadline for the board review particularly since there had been no firm offer.”

According to some shareholders to date, Glencore has com


pleted the purchase of 25.8% of OCH's shares but has options to buy more at least 43% and as much as 49%.

(Sourced from steelguru.com)

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Grindrod to sell shares worth ZAR 2 billion to Remgro Ltd

Bloomberg reported that Grindrod Ltd Africa largest shipping company plans to sell new shares worth ZAR 2 billion to Remgro Ltd to fund projects including the expansion of a coal terminal in Mozambique.

Remgro, the South African investment company will pay ZAR 15 a share giving it a 22% stake in Durban, South Africa based Grindrod. Grindrod existing shareholders will have the option of buying shares on the same terms and Remgro stake will be reduced in line with demand from the investors.

The company said Grindrod plans to spend ZAR 10 billion over next five years to expand ports and terminals capacity especially at the Maputo Coal Terminal.

According to the statement the transaction needs approval from three quarters of Grindrod shareholders before it can go ahead.

(Sourced from steelguru.com)

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Century Iron Mines to trade on TSX under symbol FER

Century Iron Mines Corporation announced that its common shares will commence trading on the Toronto Stock Exchange at the opening of trading today under the current symbol FER. Concurrently with the listing on the TSX, the Company shares will no longer trade and will be delisted from the TSX Venture Exchange.

Mr Sandy Chim President & CEO of the Company stated that "We are very pleased to have graduated to the premier Canadian exchange, another significant milestone in the development of our Company. We have been served well by our listing on the TSX Venture Exchange through its Capital Pool Company program. Listing on the TSX will provide Century Iron with greater market visibility and increased access to capital to advance the Company towards its vision to be a major player in the Canadian iron ore industry. We look forward to continuing the growth of our business on the Toronto Stock Exchange."

www.steelguru.com

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Rey Resources confirmed strike extent of the coal outcrop

Rey Resources drilling has confirmed the strike extent of the coal outcrop for two kilometres to the north, beyond the coal reserves in the existing mine plan at its Duchess Paradise thermal coal export project.

The presence of the continuous shallow coal occurrences potentially extends the proposed mine life at the project in the Canning Basin, Western Australia boosting the proposed above ground slot mining from the current plan of 10 years to about 13 to 14 years.

Also, the additional coal intercepts have the potential to expand the resources across an additional 22 square kilometres of tenement holdings adjacent to the current JORC resource. Down dip extensions of resources have been confirmed. There is an established JORC Reserve of 26.3 million tonnes thermal coal at the project based on detailed mining plans. Current drilling is expected to be completed in October.

Drilling has confirmed the presence of P1 Seam coal ranging in thickness from 0.98 to 1.47 metres. The company completed drilling along 500 meter centers during the season for a total of 2,500 metres in 20 rotary holes. Coal quality sampling will continue during the 2012 season.

Further drilling at the Duchess Paradise has also confirmed additional extensions to the P1 Seam resource with coal intersections in 38 holes for 5,800 metres, confirming further coal occurrences down-dip up to two and half kilometres to the east of the existing JORC Inferred Resource limits

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Radar Iron identifies DSO iron ore targets at Jackson and Boondine projects

Radar Iron is about to ramp up news flow across several of the company projects.

The latest positive news is that iron ore targets have been identified from an aeromagnetic survey which includes an additional 20 kilometres of magnetic responses. The survey was over the Die Hardy, Boondine and Jackson projects which are located in the Southern Cross district of Western Australia which comprised 8,300 flight line kilometres.

The outcome is that several areas of direct shipping ore mineralization have been defined at the Jackson and Boondine projects. At Die Hardy, which is the initial main magnetite target for Radar the data highlighted new untested magnetic units to the north and north-west of the existing drilling indicating a combined strike length of 4 kilometres.

Magnetic modeling for all the recently acquired data is currently underway with ground reconnaissance of potential anomalies kicking off this month and following drilling approval, drill testing is expected to commence in early 2012 at the high priority targets.

In total Radar holds around 1200 square kilometres of tenements in the Yilgarn Iron Ore Province with 120 kilometres of banded iron formations which are largely unexplored for iron ore.

1. Johnston Range DSO targeted drilling to commence

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American Power receives approval for Phase II of exploration drilling program

American Power Corp announce the amendment of its prospecting permit to cover additional drill locations for Phase II of its exploration drilling program at the Pace Coal Project in Judith Basin County, Montana.

On July 29 2011, the Coal and Uranium Program of the Montana Department of Environmental Quality approved the Prospecting Permit No. X2011335, authorizing American Power to start Phase I of its exploration drilling program at the Pace Coal Project. The initial permit covered a total of 24 drill holes on 13 different locations and the amended permit covers an additional 16 drill holes on 9 different locations.

As of September 9, 2011, the Company had completed 5,750 feet of drilling on nine drill locations corresponding to Phase I of its coal exploration program. American Power expects Phase I to be completed imminently. The board of directors of the Company is very pleased with the results to date and has approved the initiation of Phase II of the drilling program as soon as Phase I is completed.

Mr Al Valencia President and CEO of American Power said "We are delighted to have received the approval from the Montana DEQ that covers Phase II of our drilling program. We are also pleased to inform our shareholders that preliminary findings to date are in line with our technical team expectations with seven out of nine drill targets encountering coal intervals. Drill cores will be shipped to Standard Laboratories, Inc in Casper, Wyoming for analysis according to ASTM standards. Initial sampling results are expected within two to three weeks."

American Power planned exploration drilling program consists of 61 drilling sites and will involve a total of 53,875 feet of drilling. The program aim is to place a significant portion of the coal holdings of the Pace Coal Project in the proven and probable reserve classification, with an ultimate goal of establishing sufficient resources to support a greater than 20 year operational mine life. American Power exploration program will provide information relative to coal seam thickness, depth of cover expected top and bottom conditions and coal quality.

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Haranga Resources discovers significant iron ore at Selenge Project in Mongolia

Haranga Resources has unearthed broad widths of iron mineralization in all sixteen diamond drill holes completed at the Bayantsogt prospect within its Selenge Project in Mongolia.

The company is aiming to define an initial JORC Resource by the first quarter of 2012. Bayantsogt is the first of the four major targets to be drilled at Selenge.

Drilling at the Bayantsogt prospect has intersected at least five major iron lodes ranging in down hole width from 12 metres to 54 metres. Assay results have been received for seven holes. The mineralization remains open in all directions.

Highlights from within the banded magnetite skarn formations include
1. 26 metres at 27% iron (Fe) from 32 metres
2. 28 metres at 30% Fe from 3 metres
3. 29 metres at 24% Fe from 34 metres
Similar banded magnetite skarn deposits in the Selenge region, such as the nearby Eruu Gol mine have proven amenable to mining and low cost beneficiation.

The company Selenge iron ore project consists of five contiguous exploration licences covering almost 600 square kilometres of ground in the heart of Mongolia premier iron ore development region. Importantly, The Selenge project area has excellent access to the main trans-Mongolian rail line and nearby rail spurs.

The Selenge province includes the 304 million tonne deposit currently being mined at nearby Eruu Gol which produces about 2.5 million tonnes of magnetite concentrate per annum and ships the product via a newly constructed 70 kilometer rail spur connecting the mine to the main trans-Mongolian rail line.

Drilling with two rigs is continuing and the mineralization is still open in every direction including depth. The company has a third rig now drilling at other Selenge targets and is attempting to secure a further dedicated drill rig at Bayantsogt for the remainder of the drilling season.

Initial drilling has commenced at the Huiten Gol prospect. The company plans to commence drilling at the Dund Bulag prospect before the end of this month. Depending on these results, Haranga Resources may also decide to drill test at the nearby Undur Ukhaa prospect prior to year end.

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Shenhua Energy coal output in Aug up by 20pct YoY

It is reported that China Shenhua Energy posted a 20.3%YoY rise in commercial coal output in August to 23.7 million tonnes.

Coal sales in August rose 21.9%YoY to 30.6 million tonne of which exports hit 500,000 tons down by 44.4%. The railway network owned by Shenhua Energy posted a 6.3%YoY increase in throughput to 13.6 billion tonne kilometers.

The company recorded a 34.6%YoY rise in power sales in August to 16.84 billion kWh while power output totalled 18.1 billion kWh.

(Sourced from sina.com)

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Indian power utilities import 8pct more coal in August

Bloomberg quoted India Coal Market Watch said electric utilities in India increased coal imports in August to 3.19 million tonnes up by 8% from July.

It said the Central Electricity Authority a supervisory body set a target to import 4.6 million tonnes of coal for power plants last month.

It said imports rose 81%YoY to 17.9 million tonnes in the first five month of the year. That compares with a government target of 35 million tonnes.

(Sourced from Bloomberg)

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Bureau of Meteorology- Rain risks for Queensland Bowen and Galilee coal basins

According to the Bureau of Meteorology said posing a threat to recovery of coal supplies from the region this year that the chance of above median rainfall in the coal-producing Bowen and Galilee basins in Queensland is about 60% to 70%.

Maps released as part of the bureau seasonal outlook for October to December this year showed most of the Bowen with a 65% chance of above-median rainfall while the developing Galilee basin has a 70% chance of above median rains.

Heavy rainfall throughout the last southern tropical wet season caused severe disruptions to Queensland coal exports with knock on effects in the global markets for coking coal and the steel which uses it as a raw material.

Australia accounts for about 56% of coking coal traded by sea with the Bowen accounting for the vast majority of that total and the previous year rains caused the price of premium hard coking coal to spike 50% as high as USD 330 a tonne.

According to CoalPortal coking coal is trading around USD 285 per tonne at Australian ports.

Around 350 millimeters of rain fell at Moranbah at the heart of the Bowen during peak months during the 2010-11 and 2007-08 wet seasons. The bureau rainfall outlook suggests that isn't yet likely with the chance of at least 200 millimeters of rain little over 50% for October to December in most parts of the Bowen.

(Sourced from www.theaustralian.com.au)

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Indian coal ministry seeks status report on captive blocks from firms

Having already issued a warning to coal block allottees that have failed to develop mines awarded to them in a timely fashion, the government has now asked these firms to furnish a status report on progress made on these delayed projects in the July to September quarter.

The Coal Ministry said "You are requested to send detailed information for the quarter ending September 2011 in respect of allocated coal/lignite blocks and associated end use projects along with the reasons for delays in implementation of the coal/lignite project to this office by September 30."

In May, the coal ministry took a decision to deallocate 14 coal blocks and one lignite block and issued warnings in respect to 29 coal and three lignite mine allottees asking the concerned companies to commence production in time.

The companies whose coal blocks were deallocated include NTPC, Andhra Pradesh Power Generation Corporation, Bhatia International, Shree Bhaidyanath Ayurved Bhavan, Jharkhand State Electricity Board, Damodar Valley Corporation and Gondawana Ispat Ltd among others.

(Sourced from Economic Times)

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Exploration for coal and minerals in Queensland jumps by 1000pct in five years

It is reported that exploration and mining development has exploded to such an extent that Queensland is almost entirely covered by some sort of lease.

The Courier Mail reported that farmers are now pitted against global corporations as exploration for coal and minerals alone has jumped by about 1000% in five years and now covers about a quarter of the state. Added to that is the massive investment in coal seam gas and the expectation of about 40,000 wells.

More than USD 1 billion has been spent on minerals, oil and gas exploration in Queensland in the past year alone but despite the huge economic benefits the farming community now thinks mining has gone too far too fast and the Government is at least 18 months to two years behind in its regulation.

Mr Dan Gallagher Queensland Farmers Federation said "People are encouraged to get out there and go for it. The rate of exploration is outstripping the Government ability to approve it. But He said while the industry did not want a moratorium on new mining development it did want approvals to slow down.”


The increase in exploration omits applications not yet granted for exploration, existing mining developments and coal seam gas and traditional petroleum.

There are 2449 granted exploration permits for mineral and coal resources a 70% increase in number while the percentage of land they cover has grown from 2% of the state to 23.5%. Very few exploration permits ever result in a commercial mining project.

The farming community is encouraged by some moves from the State Government to restrict mining land grab which includes a buffer zone around urban areas and its strategic cropping land policy, however that relates to only a fraction of the state farming land.

(Sourced from www.news.com.au)

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Environment group stages anti coal protest west of Melbourne

It is reported that a protestor who chained himself to a coal exploration drill rig at Bacchus Marsh west of Melbourne has come down after talking to police.

The group Switch off Coal is protesting against Mantle Mining exploration in the region. One of the members of the group used thumb-cuffs to attach himself to the drill rig on a roadside.

Mantle Mining started testing for brown coal in the area two weeks ago.

The group says the community has not been consulted and the agriculture industry will suffer if mining is allowed.

Protester Mr Shaun Murray chained himself to a drilling rig at one of the test sites. He said that "This is probably the most advanced coal project and as such, it represents the first attempt to build or undertake a new coal development in Victoria in 15 years."

Another protester, Mr Paul Connor says money should be invested in renewable energy, not coal. He said that "We need to be transitioning away from coal. Brown coal is the dirtiest kind of coal."

He added that "Mantle Mining is claiming that they can burn the brown coal slightly more efficiently, but this technology that they're planning to use is in no way compatible with a safe climate future for this planet."

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Coal towns urged to consider renewable future

It is reported that a new USD 100,000 report has identified Muswellbrook and Singleton as future renewable energy hubs.

The Upper Hunter Diversification Report was commissioned by the six Upper Hunter councils, co funded by the State Government and is being released to Singleton councillors this week.

It attempts to signal where the Hunter jobs will come from over the next 25 years and as the coal boom subsides.

Singleton Council Ms Salena Avard said because of the skilled mine labour force in Muswellbrook and Singleton, the towns would be perfect for the production of renewable energy technologies.

She said "Singleton has a really fantastic set of skills that are associated both with the mining industry but professional services and all sorts of support industries."

She added that "I think there is an opportunity for us to have a look at where we can transfer those skills. Everyone recognizes that the mining industry is going to be here for some time yet but certainly life after mining is a consideration of this report."

(Sourced from www.abc.net.au)

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MEC Resources Study points to significant shale gas potential in Advent onshore fields

MEC Resources has provided the following advice from its investee company Advent Energy Ltd regarding its permits in the onshore Bonaparte Basin, Western Australia.

Advent has now completed an initial study of shale gas potential in EP386 and RL1. The results indicate significant potential upside in prospective shale gas resources for Advent with estimated unrisked OGIP for EP 386 & RL 1 in the range from 19 TCF to 141 TCF. The thickness of the prospective shale gas play varies from 300m to over 1500m.

The study key findings are

Multiple petroleum targets are present in EP 386 & RL1:

1. Proven conventional gas charged sandstone reservoirs in nearshore marine area of the Milligans Formation

2. Unconventional gas-condensate shale plays in the shallow marine areas of Lower Milligans Formation

3. Unconventional tight gas sandstone and limestone reservoirs in the Langfield, Ningbing & Cockatoo groups below the Milligans Formation

4. Lower Milligans Formation shale is prospective for shale gas play with considerably large upside potential

5. Marine shale with moderate organic richness: TOC of up to 2.2% from samples in wells within or in close proximity of EP 386. Higher TOC could be present in the deeper offshore area north & east of EP 386

6. Source rocks are mature for gas and oil generation: Ro range 0.44% to 2.42% & Tmax range from 430 to 480

7. Limited geochemical data indicates source rocks at depth shallower than c 1400 meters are mature for gas/wet gas and oil generating windows, but over mature and in the dry gas generating window at depth below 1400 meters

8. The thickness of the prospective shale gas play is varied from 300 meters to over 1500 meters. This would provide significant upside in prospective shale gas resources

9. Unrisked OGIP for EP 386 & RL 1 could be in the range from c 19 TCF to 141 TCF.

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Solar plans for coal fired power stations

It is reported that scientists and engineers have drawn up plans to convert Port Augusta two coal fired powered stations to solar thermal plants.

Non government organization Beyond Zero Emissions will meet South Australia Energy Minister Mr Michael O'Brien this week to discuss the two stations potential for conversion to solar.

Mr Mark Ooges from the organization says most equipment and staff would be kept under the plan. He said that "In a sense a solar thermal power plant is exactly the same as a thermal coal plant, the only difference is to produce the heat you use mirrors to concentrate the sun's energy rather than burning coal."

Mr Ooges says converting the power stations from coal to gas would be too costly. He said that "As Australia starts exporting a whole lot of LNG and gas prices are going to be linked to global prices so if we link our electricity generation to gas prices then we'll start getting the same volatility and uncertainty at the power switch that we're already getting at the petrol pump."

Alinta Playford B station at Port Augusta is expected to close under any carbon tax scheme.

(Sourced from www.abc.net.au)

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Fatal accident at South Wales coal mine

Euronews reported that 2 coal miners have been found dead after an underground accident in South Wales.

A rescue operation is underway to reach two more mine workers who have been trapped since Thursday morning.

The men became stuck 90 metres below the surface after a flash flood at the Gleision Colliery near Swansea.

Three other miners managed to escape. For emergency crews, it is a delicate task trying to save those trapped.

(Sourced from euronews.net)

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Sekoko in talks with cornerstone investor

It is reported that Sekoko Resources an empowerment firm in joint venture with the JSE-listed Firestone Energy was in negotiations with a multinational power company regarding it becoming an investor in its Waterberg coal development.

Firestone announced to the JSE today that the negotiations involved very significant offtake agreement for coal over the life of Sekoko project which is the Waterberg Joint Venture Project.

Firestone Energy said “The negotiations are at an early stage and a further announcement will be made in due course.”

Firestone bought a 60% participation right in the Waterberg Joint Venture which is expected to produce first coal from the proposed Smitspan mine in 2012.

(Sourced from miningmx.com)

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Bulk carrier runs aground in Rio de Janeiro port

Reuters reported that the RDB Ocean of Joy a Hong Kong flagged dry bulk carrier ran aground in the Port of Rio de Janeiro recently.

According to information from marinetraffic.com, a world wide ship tracking service, the ship, a 92,500 DWT post Panamax sized vessel was sailing from the Port of Tubarao northeast of Rio de Janeiro in Brazil Espirito Santo state.

Post Panamax ships are too large to pass through the Panama Canal locks.

The Navy said it did not know what was aboard the vessel.

Tubarao, Brazil largest port by volume moved is owned and operated by Rio de Janeiro based Vale SA, the world second largest mining company. Tubarao is Brazil main iron ore port as well as major steel, grains, coal and bulk commodities port. Vale said the ship is not theirs.

Vale press office said it was not the owner either of the cargo or of the vessel. Tugs and support vessels have the situation under control.

(Sourced from Reuters)

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Prophecy Coal receives Mongolian government endorsement for power plant project

Prophecy Coal announced that the Mongolian Ministry of Natural Resources and Energy has officially endorsed its proposed Chandgana Power Plant project.
Last August, the company which is focused on energy, nickel and platinum group metals projects, appointed local Mongolian consultants to initiate feasibility and other studies on the planned 600MW Chandgana mine power plant as Prophecy holds the Chandgana coal deposit in central Mongolia.

The thermal power plant will be connected with Mongolia's existing Central and Eastern energy systems, part of the long-term development policy of the country to supply cleaner energy. It will be built directly beside Prophecy's permitted Chandgana Tal coal project.

The company said that as the power plant project scales up to 4,200MW there is potential to export the surplus power to China, with Beijing located just 1,000 kilometres to the south.

In April 2011, Prophecy submitted its application for power plant licensing to the Mongolian Energy Regulatory Authority which has also received the endorsement. Prophecy said it expects for the ERA to issue its final decision with regards to its application in the fourth quarter of the year.

Prophecy also said that it has been in discussions with several engineering, procurement and construction contractors in the hopes of finalizing an EPC contract immediately following the receipt of the power plant license.

(Sourced from www.steelguru.com)

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Baobab Resources update on its activities

Baobab Resources plc is pleased to present an update of activities at the Massamba Group iron / vanadium / titanium project where a 160 million tonne resource upgrade was announced on 30 August 2011.

Highlight

1. Resource drilling programs at the Massamba prospects of Ruoni North and South have been completed.

2. Analytical results from holes on the first two Ruoni North drill traverses have been returned. The traverses, spaced 170 meters apart defined a broad, heavily mineralized zone from surface dipping moderately to the southwest.

3. Significant drill intercepts up to 73 meters in length, report an average head grade of 41% Fe with saleable DTR concentrate grades averaging 58% Fe, 0.8% V2O5 and 13% TiO2 at a mass recovery of 46%.

4. All Chitongue Grande resource expansion drill samples have reached the ALS laboratory in Australia. Consultant, Coffey Mining Pty Ltd, has commenced preliminary data validation and geological modelling.

5. Drilling has commenced at the Tenge prospect.

Mr Ben James MD of Baobab said "Baobab is pleased to announce that it has completed the scheduled 2011 drilling campaigns required to define the targeted resource base of 300Mt at the Massamba Group. Drilling is continuing in the Tenge area where the Company believes there is an exceptional opportunity to add substantially to the resource inventory.

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SinoCoking Coal and Coke Chemical announces results

SinoCoking Coal and Coke Chemical Industries Inc a vertically integrated coal and coke processor announced its financial results for the fourth quarter and fiscal year ended June 30 2011.

1. Fourth Quarter 2011 vs. 2010

I. Revenue increased by 126% to USD 24,661,738 from USD 10,886,577 mainly due to increased coke sales as well as the increased overall prices for all products.

II. Pre-tax income decreased to USD 15,892,450 as compared to USD 64,831,078.

III. Net income was USD 14,277,144 or USD 0.68 per diluted share as compared to a net income of USD 64,527,083 or USD 3.08 per diluted share.

2. Fiscal Year 2011 vs. 2010

I. Total revenue increased by 26% to USD 74,287,993 from USD 59,027,490 mainly due to increased coke and washed coal sales.

II. Revenue from the sale of coal products increased by 16% to approximately USD 35 million.

III. Revenue from the sale of raw coal products decreased 34% from a year earlier, in spite of the 17% increase in average selling price. As a result of the mining moratorium, we were unable to produce or secure sufficient raw coal from other producers to sell.

IV. Revenue from the sale of washed coal products increased 180% from a year earlier, as we sold some of our washed coal inventory to take advantage of the 40% increase in average selling prices resulting from the increase in raw coal price.

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Liverpool Plains mining exploration licenses get the go ahead

It is reported that the NSW Government tough conditions have been placed on the controversial renewal of two exploration licences covering the Liverpool Plains.

The licences held by BHP Billiton and Shenhua Watermark expired earlier this year.

Mr Chris Hartcher Resources and Energy Minister said BHP-Billiton and Shenhua coal exploration licences on the Liverpool Plains expired in February.

Mr Hartcher has renewed them, but he says community concern about the effect of coal exploration on prime agricultural land has been taken into consideration. He said that "Yes, we want mining, but we want mining on our terms, and our terms are protect the water, protect the agriculture, protect the environment."

Mr Sandy Bloomfield the chairman of Caroona Coal Action Group says he's still deeply concerned. He said that "Renewal on these grounds shows they are not committed to protecting the environment."

He added that "Approvals shall not include longwall mining under deep alluvial aquifers, or the flood plain, and no open cut mining should be allowed on the flood plain. There should be no longwall mining under aquifers and no longwall mining on or under the flood plain as it could damage the underground water supply and storage capacity.”

He also said that "If BHP had no intention of mining then it should be excised from the licence altogether, but it is not and I don't know if we can trust BHP."

The Minister says the renewal of the exploration licenses will not automatically lead to the granting of full mining leases.

A spokeswoman for Shenhua Watermark says the company hasn't received any details about the licence renewal from the State Government and will not comment until it's confirmed.

(Sourced from www.abc.net.au)
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Fortescue rolls out Bamboo across two mines sites

ASX-listed iron ore producer Fortescue Metals Group Ltd has rolled out Deloitte Bamboo across the company two mine sites operations and expansion areas. The application will be accessed and used by a growing team of employees as the company expands.

Mr Nev Power CEO of Fortescue said “The rollout of Bamboo was part of the company's strong commitment to excellence in safety and emergency response in the mining sector.”

He said that “We believe the key to its effectiveness is how it allows our people, during an incident to easily access critical information from their mobile devices while improving our leaders response times."

Deloitte Risk Services Partner Oliver Binz said “Bamboo was designed to create clarity during an emergency situation. This tool is about helping employees and employers access critical information in an emergency when they need it. Using push technology, it ensures that people have the latest up to date information right there on their smartphone.”

Mr Binz said “Paper based plans have lots on limitations. Even if you can keep them up to date, most people simply don’t have access to the files when they need them most. Many Queensland businesses learnt this the hard way during the Christmas floods and Cyclone Yasi. With Bamboo and staff are able to access their individual action plans, regardless of location or mobile network connectivity.”

He said that “Bamboo also leverages the capabilities of smart devices to deliver many additional benefits, such as being able to locate team members subject to network availability, direct people to evacuation sites or communicate easily with specific teams using email, SMS or phone.”

He added that “For organisations, effective incident management is all about minimising the negative impact on its people, its customers and its operations. Bamboo does exactly that.

He also said “We are very proud to have received recognition in the form of this award, and also to be working with Australian mining icon Fortescue.”

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India and Turkey to cooperate in coal sector

Mr Sriprakash Jaiswal minister of coal met Mr Taner YILDIZ minister for energy and natural resources government of Turkey and other officials on the sidelines of the 22nd World Mining Congress inaugural session on September 12th 2011 at Istanbul, Turkey.

Mr Jaiswal is leading an Indian delegation there to participate in World Mining Congress. Both the ministers discussed about the energy situation in the two countries, particularly the field of coal mining.

India’s coal minister offered technical cooperation to develop coal and lignite deposits and coal washing in Turkey. Turkey’s Energy Minister evinced keen interest for technical cooperation with India in coal mining and clean coal technologies. He said that Turkey is planning to set up some 15000 MW coal based power generation plants and requested Indian companies to participate in the tenders. Both the ministers agreed for future cooperation in coal related areas.

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Rio Tinto Finance Limited prices USD 2 billion of fixed rate bonds

Rio Tinto has priced USD 500 million of five year, USD 1.15 billion of 10 year and USD 350 million of 30 year SEC-registered debt securities. The bonds will be issued by Rio Tinto Finance Limited and will be fully and unconditionally guaranteed by Rio Tinto Plc and Rio Tinto Limited.

The five year notes pay a coupon of 2.25% and will mature on 20 September 2016. The 10-year notes pay a coupon of 3.75% and will mature on 20 September 2021.

The 30 year notes mature on 2 November 2040 and constitute a further issuance of the USD 500 million 5.20% notes due 2040 that were issued on 2 November 2010 and the USD 300 million 5.20 per cent notes due 2040 that were issued on 20 May 2011. Upon issuance of the bonds, USD 1.15 billion of the 5.20% notes due 2040 will be outstanding.

Barclays Capital Inc, BNP Paribas Securities Corp, Morgan Stanley & Co LLC, Citigroup Global Markets Inc, HSBC Securities Inc and SG Americas Securities LLC acted as Joint Bookrunners.

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Sydney Catchment authority resists coal seam gas

It is reported that the board of the Sydney Catchment Authority is pushing to strengthen its powers to control coal seam gas exploration.

Documents obtained by the ABC reveal increasing concern among board members about the impact of coal seam gas wells on water quality in special protected catchment land in the Woronora and Illawarra areas.

The board has decided the full impact of coal seam gas projects needs to be spelled out before exploration can start. The documents show it was only after Apex Energy exploration wells were approved by the state's Primary Industries Department that the authority board asked if access to protected drinking water catchments could be withdrawn.

The board has decided it will not approve access for a new well in
protected land which is about to be referred to the NSW Planning Assessment Commission.

Apex says the well is crucial for its USD 7 million project, and the company will appeal if it is refused.

(Sourced from www.abc.net.au)

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Evergreen Energy announces successful completion of Penrhyn coal testing

Evergreen Energy Inc announced that it had successfully completed its Penrhyn coal testing utilizing Evergreen's patented K-Fuel(R) upgrading process.

The Penrhyn coal deposit is located in South Australia and a drilling to date has confirmed a JORC compliant measured and indicated resource of 352.4 million tonnes of coal with an additional exploration target of a further 300 to 330 million tonnes of coal. The Penrhyn coal deposit is owned by Southern Coal Holdings a joint venture between WPG Resources Limited and Evergreen.

On August 23, 2011, Evergreen announced that it had upgraded Penrhyn coal to K-Fuel with heating values greater than 5,500 kilocalories per kilogram prior to the rehydration necessary for shipping and storage. Further testing has now provided a more comprehensive view of the product quality from the Penrhyn deposit.

Mr Ilyas Khan Evergreen Chairman said "We are particularly pleased with the K-Fuel(R) process and our ability to upgrade the Penrhyn coal to an export grade fuel product with a heating value that is shippable of at least 5,000 kilocalories per kilogram. This represents an increase of approximately 25% to 40% over the unprocessed coal. Additionally, the K-Fuel(R) process has reduced sodium by up to 50% and chloride by up to 70% in the final product."

He said that "These testing results are a milestone for the WPG and Evergreen stakeholders, as well as the clean coal industry. Our completed testing confirms that a latent sub-bituminous coal deposit in Penrhyn can be upgraded to thermal coal quality. Our results are in-line or in excess of expectations and continue to demonstrate the potential for the K-Fuel(R) process to add value to low rank coal resources around the world. Our team will continue working to further enhance the value of the K-Fuel(R) process. In parallel we are working towards completing pre-feasibility studies for mine and K-Fuel(R) plant developments for the Penrhyn and Lochiel North coal deposits."

Mr Wayne Rossiter CEO of SCH said "These testing results are an important milestone in underpinning our business model for the development of a low ranking coal beneficiation business in Australia using the proven K-Fuel(R) process."

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