ALTONA Energy has announced that Sino-Aus has successfully completed its due diligence process and is ready to enter discussions regarding a Joint Venture agreement to progress the Arckaringa Project.
Located in the state’s far north the Arckaringa Project proposal is to mine low grade coal and convert it to high grade hydrocarbons for diesel fuel and methanol production and possible low-cost power generation.
The mine has estimated capital costs of around $3 billion.
As a result of the successful due diligence Altona will go ahead with a planned drilling program of 31 holes by the first quarter of 2015 to extract core coal samples for technical and quality analysis and for further hydrogeological studies. Work will then begin on drafting a Banking Feasbility Study.
“The recently hosted due diligence trip in South Australia with Sino-Aus and Wintask was an excellent opportunity to comprehensively showcase the vast potential of the Arckaringa Project and we are delighted that Sino-Aus and Wintask have now confirmed that we have satisfied their due diligence requirements and we look forward to updating shareholders further as the negotiations on the joint venture agreement progress, ‘’ Altona’s Chief Executive Chris Lambert said in a statement released on Altona’s website.
Altona’s application for a renewed Program for Environmental Protection and Rehabilitation (PEPR) has also been approved by the South Australian government.
The company is awaiting an extension to the Water Affecting Activity Permit (WAAP), which defines water management procedures for the proposed drilling program and expects to receive a decision shortly.
“We are also extremely pleased that we have been granted the PEPR approval, which provided further evidence that the South Australian government has been proactive in supporting Altona since we became operator of the project,’’ Mr Lambert’s statement said.