Carbon Energy ramps up Indian UCG Projects

Metex Resources Ltd has announced that the joint venture company, Carbon....

  Metex Resources Ltd has announced that the joint venture company, Carbon Energy Pty Ltd (a 50:50 joint venture company with CSIRO) is increasing its Underground Coal Gasification (UCG) activities in India with the signing of a first stage A$237,500 contract with the Australian Government to identify and develop clean coal UCG projects in India.The potential for UCG will be assessed with a range of Indian collaborators, and a feasibility study for UCG project developed for at least one site. If successful, a second stage development of a UCG pilot will follow in 2008. This is the first implemented contract for the Australian Government in its $100M commitment to the Asia Pacific Partnership on Climate change.CEPL has an MOU with Singareni Collieries Company Ltd to jointly develop UCG projects in Andra Pradesh State. Collaborative work has identified significant coal resources suitable for UCG in the Godavari Valley. Detailed evaluation has commenced on an area in the Manugura coalfield. The prospect is down dip from existing surface and underground mines and drilling at 300m spacing has encountered a coal seam ranging from 5m to 15m in thickness at depths between 300m and 600m over a 20sqkm area. The deposit is not considered suitable for conventional underground mining but analyses to date indicate it is highly prospective for UCG.Carbon Energy Pty Ltd (CEPL) is a Joint Venture between Metex Resources Ltd and the CSIRO to develop and commercialize the gasification of underground coal deposits (Underground Coal Gasification or UCG) by delivering a new generation of large scale energy projects based on the more environmentally responsible and sustainable use of coal.Metex will acquire a 50% interest in a new Joint Venture Company, Coal Gas Corporation Pty Ltd (CGC), by subscribing $2.5 million in equity capital over a 12 month period. The CSIRO has been granted its 50% equity interest for assigning its rights, title and interests associated with the Underground Coal Gasification (UCG) Technology, as well as various Intellectual Property (IP) to CGC.