Wesfarmers buys further into Scadden JV

16/03/2009 - 14:38

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Wesfarmers' coal division, Premier Coal, has bought a further 30 per cent interest in Blackham Resources' tenements that surround the existing Scadden Energy joint venture near Esperance.

Wesfarmers buys further into Scadden JV

Wesfarmers' coal division, Premier Coal, has bought a further 30 per cent interest in Blackham Resources' tenements that surround the existing Scadden Energy joint venture near Esperance.

Blackham and Premier have a 70 per cent and 30 per cent interests respectively in the Scadden coal-to-liquids JV.

Today, Blackham said it has vended 31,000 hectares in tenements and tenement applications into the JV, with Premier to acquire a 30 per cent interest for an undisclosed cash consideration.

"All of the Scadden deposit is now part of the Scadden Energy JV and the total tenure including applications under the JV is now in excess of 52,000 hectares," Blackham said.

The project, located some 60 kilometres north of Esperance, has a resource of 762 million tonnes of lignite which gives the operation over 70 years of feedstock.

A scoping study found the coals-to-liquid operation is technically feasible with a production rate of 15,000 barrels per day or 4.8 million barrels per annum.

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