CGE Enters Into $400m Coal Gasification Agreement In Mongolia

Published: 02-Nov-2009

Clean Global Energy (CGE) has entered into a $400m joint venture (JV) agreement to undertake an underground coal gasification (UCG) project in Inner Mongolia.

As reported, CGE partners with the Beijing Yusenjiayu Environmental Protection Technology, Inner Mongolia Gu Xin Mining and Goldbridge Clean Tech Energy of the UK to undertake a commercial UCG project on Gu Xin's 1.8 billion tonnes Inner Mongolia coal deposit. CGE is expected to hold a 35% controlling interest in the venture.

The JV plans to undertake the capital raising activities for the project on the Hong Kong Stock Exchange of not less than $120m and debt funding of not more than $280m.

Prior to the listing, initial funding of $1m would be contributed by the JV partners in proportion to each parties shareholding. CGE has to chip in $350,000, which would be funded from existing cash reserves.

CGE is also to be engaged and appointed by the JV to design, operate and manage the UCG plant under a separate commercial operating agreement.

No items to display

Tell your friend about this article