Looking for new black gold: coalRobin Bromby June 04, 2007...

Looking for new black gold: coal
Robin Bromby
June 04, 2007

GERMANY, without its own domestic oil resource, pushed ahead the production of oil from coal by liquefaction during World War II. The technology was later refined in South Africa to combat shortages of oil under the embargo of the apartheid era. That country's two coal-to-liquid plants still operate and are well placed if oil prices rocket and the world starts running short.
Now the US Congress is talking about spending billions in construction loans for new coal-to-liquid plants.

This coal-to-liquid story is one that will gain traction as the oil crunch grows, so it was not surprising that shares in Linc Energy put on a spurt after the company announced a deal with Shiv-Vani, described as one of India's oil and gas exploration companies. Linc is looking to turn stranded coal deposits into clean power and ultra-clean diesel.

Incidentally, Linc is not the only local coal company to attract big Indian interest. Bhushan, that country's third biggest steelmaker is buying a large stake in Bowen Energy.

But back to coal-to-liquid. Recently listed South Australian oil and coal play Sapex is looking at the potential in its deposits for coal gasification and coal to liquid. In the same neighbourhood, London-listed Altona Resources is working to convert 7.5 billion tonnes of low-grade coal into clean liquid fuel.

There is another play in the wings, with Xanadu Mines looking to float on its Mongolian properties. Its coal resource, thought to be about 150 million tonnes, is sub-bituminous and liquefaction is one possibility being examined.


What do you think a hole as big as SXP's is worth under the above scenario.......

Hint : More than you can count