- Leigh Creek Energy (LCK) has signed its first overseas joint venture agreement (JVA) with China New Energy Group (CNE)
- CNE has significant interests in underground coal resources in the Shanxi Province in Northern China
- Under the agreement, the company will provide technical knowledge to help CNE develop these interests
- While, CNE will provide Leigh Creek with funding, access to coal and knowledge of the Chinese regulatory system
- On the market this morning, Leigh Creek is up 6.67 per cent and trading at 16 cents per share
Leigh Creek Energy (LCK) has signed its first overseas joint venture agreement (JVA) with China New Energy Group (CNE).
CNE has large commercial interests in significant underground coal resources in the Shanxi Province in northern China.
Under the agreement, Leigh Creek will provide technical knowledge to help CNE develop these interests and third party coal interests in China as in-situ gasification (ISG) projects.
Leigh Creek’s knowledge has come from developing South Australia’s Leigh Creek Energy Project (LCEP).
What will CNE bring to the table? At this stage, it’s set to provide Leigh Creek with funding, access to coal, and knowledge of the Chinese regulatory system, which will accelerate commercialisation of ISG in China.
“The joint venture with CNE provides a pathway for LCK to generate a revenue stream while the company focusses on the development of our key LCEP. Our proven ISG operations have several environmental, safety and economic advantages,” Managing Director Phil Staveley said.
“CNE sees several opportunities to work with us to maximise the return from its own and third parties’ mining assets by using ISG to convert its coal into gas for
the production of hydrogen, power, pipeline quality gas or ammonia-based fertilisers,” he added.
Now, Leigh Creek will start to evaluate potential ISG sites in collaboration with CNE.
On the market this morning, Leigh Creek is up 6.67 per cent and trading at 16 cents per share at 10:45 am AEDT.