15th May 2014 11:56
LONDON (Alliance News) - Altona Energy PLC Thursday said it has been informed by Sino-Aus Energy Group Ltd and Wintask Group Ltd that they have completed due diligence and are ready to enter discussions over a possible joint venture agreement at Altona's Arckaringa project in Australia.
The Australian coal-focused energy company said that as part of the due-diligence process, Sino-Aus and Wintask visited the region and held briefings with key government officials and private sector parties.
Altona took full control of the Arckaringa project in March after CNOOC New Energy Investment Co Ltd's 51% holding reverted to Altona.
In January, Altona ended the CNOOC joint venture, saying that working with the Chinese firm was becoming increasingly frustrating.
Days after ending the joint venture, Altona signed a memorandum of understanding with Sino-Aus and Wintask for the development of Arckaringa.
The company said at the time that the investing parties plan to invest RMB300 million into Altona and the Arckaringa project to fund the completion of the site's bankable feasibility study.
Altona also announced that it has been advised by the South Australian government that its application for a renewed Program for Environmental Protection and Rehabilitation at the site has been approved.
The company added that it is currently awaiting an extension to its Water Affecting Activity permit for the site, which defines water management procedures and expects a decision shortly.
Altona Energy shares were down 2.0% to 1.25 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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