Synthesis Energy Systems, Inc. (SES) (NASDAQ:SYMX), has announced that its Australian platform company, Australian Future Energy Pty Ltd (AFE), has successfully closed the acquisition of the 270 million t JORC compliant thermal coal resource, near Pentland, Queensland.
The acquisition was completed on 18 August, 2017, through AFE’s wholly owned subsidiary, Great Northern Energy Pty Ltd (GNE). SES is a 40% owner of AFE.
This coal resource is AFE’s second successful foray into securing long-term coal supply for its projects, following the successful formation and spin-off of Batchfire Resources, which acquired the Queensland-based Callide Mine operations in 2016. AFE’s business plan is to secure access to low-cost coal, coal waste and biomass resources, required to produce the energy and chemical products for its clean energy projects under development.
SES Gasification Technology (SGT) affords AFE the capability to use low-cost, unmarketable coals generated in the coal mining process, together with biomass, to build projects that are both environmentally responsible and economically advantaged over using expensive natural gas.
“Together with SES we intend to be an industry leader in delivering clean, low-cost energy. The acquisition of the coal resource at Pentland is an important step in our comprehensive plan to develop, finance and construct economically attractive projects that uniquely meet the needs of Australia on all fronts, by providing a lower cost alternative to natural gas, creating numerous attractive job opportunities, and demonstrating leading environmental responsibility,” said AFE Executive Director, Edek Choros.
Mr. Choros further added:
“AFE is currently in the process of filing for the Queensland government approval of a start-up mine for the Pentland resource. Within the next 24 months we intend to start export coal sales and later use coal waste, together with renewable biomass, for an SGT energy project in the Townsville area.”
SES President and CEO, Ms. DeLome Fair, commented:
“AFE is pursuing its strategy of connecting important feedstock resources to its portfolio of project developments underway, which are intended to manufacture a variety of products, such as fertilizers, power, and fuel gas, in a very clean and low carbon manner, while simultaneously delivering positive financial performance. This includes a combination of undertakings to generate near-term earnings, alongside its large-scale clean energy project developments now underway.
“We believe our 40% ownership in the AFE business will benefit from this approach, and we are actively supporting AFE with its developments, and preparing to support the significant expected SGT technology delivery work to come, related to AFE’s first project and the SGT license signed this past May,” added Ms. Fair.
Read the article online at: https://www.worldcoal.com/power/22082017/afe-secures-long-term-coal-supply-through-pentland-coal/
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