Sydney-based White Energy Company has signed a joint venture agreement with an entity managed by Black River Asset Management, part of the Cargill group, to develop and commercialise White
Sydney-based White Energy Company has signed a joint venture agreement with an entity managed by Black River Asset Management, part of the Cargill group, to develop and commercialise White Energy’s coal upgrading technology throughout Africa.
White Energy and Black River will establish a special purpose company to be held 51 per cent by White Energy and 49 per cent by Black River that will actively originate, develop, construct and operate coal upgrading plants in Africa.
The joint venture will operate either on its own or in conjunction with companies in Africa with access to appropriate coal reserves or power companies looking to increase their energy output, and will have the exclusive rights to use White Energy’s coal upgrading technology on the African continent.
White Energy and Black River have been actively analysing the market and reviewing opportunities in Africa for some time and have already commenced discussions with a number of key players interested in working with the company in Africa.
Black River has committed, subject to milestones, USD70m for its 49 per cent interest in the new company. The majority of this investment and White Energy’s equity contribution of around USD31m will be conditional upon the company agreeing to proceed with projects that meet the agreed investment criteria.
‘White Energy is delighted to partner with Black River, which has an enviable global reputation and significant access to capital,’ says managing director John Atkinson. ‘Black River has been a shareholder and supporter of the company for a number of years and has considerable experience in the coal sector in Africa. Its capital and experience, together with White Energy’s technology and operating expertise, is a compelling combination.’
Torben Thordsen, Black River’s senior portfolio manager, says: ‘Black River has been a shareholder of White Energy for more than two years. Given our experience in Africa and our interaction to date with African coal and power companies, we believe that White Energy’s upgrading technology and its unique process could go a long way to improving energy output in Africa. Accordingly we have committed, subject to certain conditions, USD70m and significant resources to work with White Energy to build a substantial enterprise in Africa.’
