The monthly pre-paid fees for services are for its contribution to JV specific activities required while the JV awaits Chinese Government approval.
This approval process is on-track with all documentation lodged with the relevant authorities and approval expected in the coming months.
The company owns proprietary gasification technology (keyseam) which can be utilised to develop otherwise stranded coal deposits, both here and overseas.
Future sources of revenue and earnings for Carbon Energy are expected to be derived from developing underground coal gasification (UCG) assets both here and in Asia as well as licensing and technical services income and royalties resulting from its tie up with JinHong.
Apart from the agreement of monthly pre-paid service fees, the JV also agreed on priorities for the short-term. These include:
- Securing a suitable coal field;
- Engaging the in-country engineering and construction contractor;
- Contracting an in-country drilling company; and
- Commencing pre-engineering works.
The company's shares have begun to firm since mid-January 2016.
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