Australian authorities have given the nod to a deal between prospective coal mining group , Altona Energy Plc (LON:ANR) and its joint venture partner CNOOC New Energy International, which is run by Chinese oil major, CNOOC-NEI. Under the terms of an agreement between the two sides, CNOOC is set to fund a bankable feasibility study for a coal mine and an integrated value-added project in the Arckaringa Basin of South Australia. The deal could eventually see the Chinese group take a 51% in Altona’s licenses covering the estimated 7.8 billion tonne coal resource. As part of the joint venture process, the deal was submitted to Australia’s Foreign Investment Review Board (FIRB), which has not raised any objections. Shares in Altona rose by 9% to 15.25p on the news.
Altona’s chairman Chris Lambert said: “The success of CNOOC-NEI’s formal application to FIRB represents a crucial milestone for the JV as it opens the gate for the full mobilisation of JV resources and advancement of the BFS for the Arckaringa Project. CNOOC-NEIA is now able to release the capital required for the all-important BFS, which will determine the most profitable applications for our 7.8 billion tonne coal resource. Work will shortly commence on the BFS by the joint operating team. There is a great deal of value adding activity to be undertaken throughout 2010 and we are delighted to be able to move forward with vigour after many years of solid preparation.”
In April 2010 CNOOC-NEI and Altona's operating subsidiary Arckaringa Energy formalised their JV in order to commercialise the Arckaringa Project. Altona said the JV had significantly reduced risk to its shareholders and secured both funding and a strong partner; not only to carry out the staged evaluation work of the BFS, but also to take responsibility for the evaluation of coal development, coal to liquid (CTL), synthetic natural gas, power co-generation and other potential clean energy projects.
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