14 October 2008
LINC SIGNS CONTRACT FOR PROJECT IN VIETNAM
On Saturday 11 October 2008 Linc Energy Ltd (ASX:LNC), the Vietnam National Coal-Mineral Industries Group (Vinacomin) and the Marubeni Corporation of Japan (Marubeni) executed a Business Cooperation Contract to undertake Underground Coal Gasification (UCG) in Vietnam.
Following entry into a Memorandum of Understanding and a Project Development Agreement in late 2007, Linc Energy announces today that it has signed a Business Cooperation Contract with Vinacomin and Marubeni to undertake a project to develop UCG and GTL in the Red River Delta adjacent to Hanoi in Vietnam.
Vinacomin has the rights to develop Vietnam’s coal assets in the Red River Delta area, which has an estimated 30 billion tonnes of coal (Non JORC Code standard) based on exploration undertaken to date.
Under the Business Cooperation Contract the companies have agreed to undertake a 4 stage project to verify the feasibility of exploiting the coal assets via UCG for both power generation and Gas to Liquids (GTL) production. Following the finalisation of local approvals and initial civil works by Vinacomin, Linc Energy expects to commence construction of a UCG field in the Red River Delta area in the 2nd quarter of 2009.
Linc Energy will be remunerated for the work it undertakes during the construction of the UCG field and the feasibility study, and it is expected that this initial phase of the project will be completed by the end of 2009. It is the intention of the parties to then move immediately into the next phase of the project which will see the commercialisation of UCG in Vietnam.
Linc Energy’s Chief Executive Officer, Mr Peter Bond said “This is another exciting development for the Company as we move to rapidly develop our UCG and GTL operations globally, and we are looking forward to working with our partners in Vietnam to commercialise the substantial amount of stranded coal in the Red River Delta. This project offers another opportunity to quickly generate revenue for Linc Energy’s shareholders.”
“Linc Energy is continuing to evaluate a number of further projects within Australia and overseas and I remain committed to creating a commercial UCG to GTL facility for Linc Energy shareholders in the near future.”
ASX ANNOUNCEMENT / MEDIA RELEASE
CONTINUED…
For further information about the Business Cooperation Contract with the Vinacomin and Marubeni, please contact Peter Bond.
Peter Bond
Chief Executive Officer
Information for Media:
Mr Peter Bond
Chief Executive Officer
Phone: +61 7 3229 0800
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ASX Contact:
Mr Craig Ricato
Company Secretary
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Information for investors:
Ms Janelle Van de Velde
Manager, Corporate Services & Investor Relations
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Company Profile
Linc Energy is an innovative, forward thinking energy company and Australia’s leader in clean coal technology. The company’s vision is to become a dominant player in the supply of more environmentally friendly power, diesel and jet fuel.
Linc Energy aims to achieve this vision by bringing together, for the first time anywhere in the world, two proven production processes known as Underground Coal Gasification (UCG) clean coal technology and Gas to Liquids (GTL).
These processes will economically convert vast “stranded” coal deposits into ultra clean liquid fuels.
Linc Energy will also use the Syngas produced from UCG clean coal technology as feedstock for gas turbines to generate much needed environmentally friendly electricity.
The company has a unique leading edge capacity to provide a viable, more sustainable and smart alternative source of liquid fuels and power generation well into the foreseeable future.
Linc Energy represents a new future for liquid fuels production and power generation.