Altona Energy Regulatory News (ANR)

25 Oct 2007 10:00

Altona Resources PLC25 October 2007 Altona Resources Plc / Index: AIM / Epic: ANR / Sector: Exploration & Production 25th October 2007 Altona Resources Plc ("Altona" or "the Company") Joint Announcement by FreightLink and Altona Resources MOU - Freight Services for the Arckaringa Project Altona Resources plc ("Altona"), the Australian based energy company, hasentered into a Memorandum of Understanding ("MOU") with leading Australian raillogistics company FreightLink Pty Ltd ("FreightLink") in relation to the futurefreight services for Altona's Arckaringa Coal-to-Liquids ("CTL") and PowerProject ("Arckaringa") in South Australia. The MOU provides for Altona and FreightLink to work together to formulate aproposal for a commercial services agreement covering the transport anddistribution of Arckaringa's inputs and products, including liquid fuels fromthe proposed CTL plant. The establishment of efficient transport links andcompetitive transport costs is a vital component of Altona's ongoing feasibilitystudies into the Arckaringa Project. FreightLink owns the Tarcoola to Darwin railway and is a major provider of railtransport services to both the Australian and overseas markets centred on theAdelaide to Darwin rail corridor, on which the Arckaringa Project is located.The MOU provides FreightLink the opportunity to strengthen its growing domesticfreight markets and Asian export hub in Darwin, via the transport of liquidfuels from the proposed CTL plant and the import of goods and materials requiredfor the construction and operations at Arckaringa. The base case 10 millionbarrels of liquid fuels per annum is currently forecast to require a fully ladentrain per day. The Adelaide to Darwin rail corridor runs directly through the area covered byAltona's coal leases in the Arckaringa Basin and lies 60 km from the Wintinnadeposit, which will provide the coal feedstock for the CTL and Power plant.Importantly a rail link will provide Altona with a strong marketing advantagefor the Arckaringa Project. The Altona Directors and FreightLink believe thatthe regional market for distillate fuel is growing, mainly due to new mining andresource processing projects within the area, whilst South Australia and most ofthe Northern Territory is totally dependent on high cost imports of liquidfuels. The Arckaringa Project's central location on the railway makes it ideallyplaced to secure local markets and strengthen regional fuel supply security. Inaddition, the rail corridor provides direct access to the growing Asian marketfor distillate and higher value products including jet fuel and other emergingmarkets which are expanding on the back of strong growth in China, India andother Asian countries. Managing Director of Altona, Mr. Chris Schrape commented, "The MOU provides anegotiating framework for the parties to establish a mutually rewardingcommercial relationship, with the aim of establishing Altona's CTL plant as amajor source of competitive liquid fuels to boost the region's booming economyand to provide new export opportunities". ***ENDS*** For further information visit www.altonaresources.com or www.freightlink.com.auor please contact: For Altona Resources: Christopher Lambert Chairman +44 (0) 207 024 8391Christopher Schrape Managing Director +61 (0) 417 984 434Hugh Oram Nabarro Wells & Co Limited +44 (0) 207 710 7400Alastair Stratton Matrix Corporate Capital LLP +44 (0) 207 925 3300Hugo de Salis St Brides Media & Finance +44 (0) 207 242 4477 For FreightLink:John Fullerton Chief Executive Officer +61 (8) 8245 9122 Notes to Editors: About Altona Altona Resources Plc is an Australian based energy Company that listed on theAIM market of London Stock Exchange in March 2005. Altona's primary focus isthe completion of a bankable feasibility study for its wholly owned ArckaringaProject for an integrated 10 million barrel per year Coal to Liquid ('CTL')plant with a 560 MW co-generation power facility. The Company holds, through its wholly owned subsidiary Arckaringa Energy PtyLtd, a 100% interest in three exploration licences covering 2,500 sq. kms in thenorthern portion of the Permian Arckaringa Basin in South Australia. Theseinclude three coal deposits, Westfield (EL3360), Wintinna (EL3361) andMurloocoppie (EL3362). All three lie close to the Adelaide to Darwin railwayand the Stuart Highway. Containing more than 7.5 billion tonnes of coal (basedon previous JORC equivalent standards of the time) these coal deposits areeffectively one of the world's largest undeveloped energy banks, capable ofconversion into clean liquid fuels, low cost power and high value industrialfeedstocks. About FreightLink FreightLink owns and operates the railway between Tarcoola and Darwin under a50-year concession agreement, and provides transport services to Australia andoverseas markets centred on the Adelaide-Darwin corridor. FreightLink'sheadquarters are in Adelaide, the capital city of South Australia, and itoperates a number of regional terminals along the corridor. FreightLink operates train services between Adelaide-Darwin, with connectingrail services to other interstate locations. In addition, it hauls bulk mineralsdestined for China and other Asian markets from mines on the Adelaide-Darwinrailway to the Port of Darwin. A track access agreement is in place with GreatSouthern Railway to operate two weekly passenger services (The Ghan) betweenAdelaide and Darwin. FreightLink's shareholders include Kellogg Brown & Root, Carillion, JohnHolland, Genesee & Wyoming Australia, Macmahon Holdings and a number of otherinvestment shareholders, including the Northern and Central Aboriginal LandCouncils. About Coal-to-Liquids (also see www.altonaresources.com) CTL is a proven technology which converts coal into more environmentally cleanand manageable energy sources including gas and synthetic fuels. The processinvolves two major stages, gasification to produce synthetic gas ("Syngas") richin hydrogen and carbon, and a liquefication stage where the Syngas is reactedover a catalyst to produce high quality, ultraclean synthetic fuels and chemicalfeedstocks. CTL is a prime example of clean coal technology - the associated combined cycleunits produce negligible sulphur oxides, significantly less nitrogen oxides and10 - 20% less CO2 per unit of power generated than a conventional coal firedplant, whilst carbon capture and storage offers the potential to reduce theoverall greenhouse gas emissions from CTL to below the "well to wheel" level offuels derived from crude oil. The technology is best demonstrated in South Africa, where currently 30% of thecountry's gasoline and diesel fuel needs are met through CTL plants. This information is provided by RNS The company news service from the London Stock Exchange