West Hawk, Lu'An to develop coal projects in China

Canada's West Hawk Development and China's Shanxi Lu'An Coal Mining have agreed to jointly develop an underground coal gasification system to produce clean liquids and electric power.

Jan. 12, 2007

By OGJ editors
HOUSTON, Jan. 12 -- West Hawk Development Corp., Vancouver, BC, and Shanxi Lu'An Coal Mining (Group) Co. Ltd. of Changzhi City, China, have agreed to jointly develop an underground coal gasification system to produce clean liquids and electric power.

This agreement strengthens an earlier memorandum of understanding between the companies to develop a coal gasification project and to review certain coal resources owned by Shanxi Lu'An Mining Group. The partners want to determine the best resources available for a conventional integrated gasification combined cycle electrical power plant and a coal-to-liquids plant.

Lu'An Mining will dedicate 500 million tons of coal property toward the underground gasification development and both companies are working on a program to advance this technology. Lu'An Mining representatives are scheduled to be in the US and Canada this month to further this initiative.