GCM Resources Regulatory News (GCM)

12 Jan 2005 10:53

Asia Energy PLC12 January 2005 Asia Energy PLC Tests of Coal Quality at Asia Energy's Phulbari Deposit Indicate Presence of High Quality Export Coal Products 12th January 2005 Asia Energy PLC ("Asia Energy" or "the Company") announces today that coresample analysis from recent drilling at its Phulbari Coal Project ("the Project") in north-west Bangladesh confirms expectations of a bituminous coal with HighVolatiles, Low Ash, and good calorific value. Laboratory testing workindicates that some of Phulbari's coal production may be suitable for sale tothe metallurgical export markets either as a Semi-Soft Coking Coal or as aPulverised Coal Injection ("PCI") coal. Float-sink testing conducted at the ACIRL laboratories in Brisbane, Australia,and review by QCC Resources Pty Ltd ("QCC") indicate that a range of coalproducts suitable for both the export and domestic markets may be extracted fromthe coal by upgrading from a simple crushing and sizing installation to astate-of-the-art Coal Processing Plant, utilising proven dense medium separationtechnology. This will allow the extraction of economic quantities of Semi-SoftCoking Coal (CSN 3 to 4) and/or PCI grade coal (ash 8% air dried), both of whichare used in steel making processes, as well as export quality thermal coal (6800kcal/kg air dried basis). Detailed properties of all potential products are being determined to evaluatethe optimum target markets and project economics. On this basis, additional coresampling of larger diameter drill holes (200 mm) will be necessary to determinethe process equipment requirements, potential product mix and comprehensive coalquality specifications for the planned coal production. Extraction of premium coal products from Phulbari has implications for the CoalHandling and Process Plant designs being built into the on-going DefinitiveFeasibility Study ("DFS"). The engineering studies of Run-of-Mine coal handling,process plant requirements, and product handling at the Project's planned mineand port are being expanded accordingly. The coal processing and engineeringwork is being undertaken in concert by GHD Pty Ltd and QCC, Asia Energy'sconsultants in these fields. Similarly, changes are required to the DFS marketing study to take account ofthe potential to mine these higher value products. AME Mineral Economics, basedin Sydney, Australia, were recently appointed to provide an analysis of existingand future markets for coal products from the Project. "The presence of these premium coal products within the Phulbari coal measuresshould significantly broaden the potential markets for the Company's future coalproduction and enhance the project economics", commented Asia Energy's JointManaging Director Mr David Lenigas. ABOUT ASIA ENERGY PLC Asia Energy PLC is a London-based AIM quoted company whose primary activity isthe development of an open cast coal mine at Phulbari in north-west Bangladeshwhich has been projected to produce 15 million tonnes of high quality coal peryear. The Company is currently carrying out an intensive drilling programme onthe basin as part of the DFS that is due for completion in 2005 with theobjective to start mining at Phulbari in 2007. The DFS will further define thedeposit, which has potential reserves in excess of 400 million tonnes of HighVolatile, Low Sulphur bituminous coal. Asia Energy has agreements in place with the government of Bangladesh for thedevelopment and exploitation of the mine which is located 30 metres above sealevel, a distance from the country's flood-prone deltas. The company iscommitted to developing the mine in an environmentally and socially responsiblemanner in accordance with the highest international standards, and to this aimis conducting an Environmental Impact Assessment and Social Impact Assessment. The Phulbari mine will export coal to neighbouring India and to Asia's majorseaborne markets, and in addition to tax and royalty revenues will also providea vital new long-term source of sustainable energy to Bangladesh. As part of thedevelopment project, Asia Energy will also conduct a separate feasibility studyfor a mine-mouth power station. ENQUIRIES: Michael Frayne, Joint Managing Director Justine Howarth, Cathy Malins michael.frayne@asia-energy.com Parkgreen CommunicationsDavid Lenigas, Joint Managing Director Tel: +44 (0) 20 7493 3713 david.lenigas@asia-energy.com Justine.howarth@parkgreenmedia.comAsia Energy PLC cathy.malins@parkgreenmedia.comTel: +44 (0) 20 7409 0890, Fax: +44 (0) 20 7409 2750info@asia-energy.com; www.asia-energy.com Laith Reynolds, Executive Director (CEO- Bangladesh)Bangladesh: +8801733011445 This information is provided by RNS The company news service from the London Stock Exchange