LEIGH CREEK ENEGRY

The Australian Mining Review - - MINING SOUTH AUSTRALIA - LEIGH CREEK EN­ERGY LIM­ITED +61 (8) 8132 9100 con­tac­tus@lcke.com.au lcke.com.au

Leigh Creek En­ergy Lim­ited

(ASX: LCK) is an emerg­ing South Aus­tralian en­ergy com­pany on the cusp of com­menc­ing a large 30+ year project that will boost eco­nomic and com­mu­nity de­vel­op­ment of the strug­gling out­back town of Leigh Creek and sur­round­ing re­gions.

The town of Leigh Creek plays a vi­tal role in the so­cio-eco­nomic fab­ric of South Aus­tralia’s far north, but the clo­sure of the Leigh Creek Coal­field in 2015 has since con­demned the town to steep pop­u­la­tion de­cline and busi­ness clo­sures. Front and cen­tre to the town’s hopes of sur­vival is Leigh Creek En­ergy’s (LCK) in situ gasi­fi­ca­tion project at the for­mer coal­field, which is ex­pected to yield its first gas ex­trac­tion dur­ing the third quar­ter of 2018.

Part of the project’s dis­tinc­tive at­trac­tion is its huge re­source, which at just un­der 3000PJ makes up al­most 8 per cent of East Aus­tralia’s 2C syn­gas re­source. A wide range of op­tions for com­mer­cial op­por­tu­ni­ties in­clude the sup­ply of qual­ity meth­ane into the east coast pipe­line, new elec­tric­ity gen­er­a­tion, and am­mo­nia prod­ucts.

But while an ul­ti­mate com­mer­cial direc­tion is yet to be de­ter­mined, an LCK­com­mis­sioned In­de­pen­dent Eco­nomic Im­pact As­sess­ment of a scaled up com­mer­cial fa­cil­ity ( 500 MW, fu­elled by syn­gas) es­ti­mates over 2500 jobs will be cre­ated dur­ing the con­struc­tion phase in SA, 380 long term jobs dur­ing op­er­a­tions and hun­dreds of mil­lions of dol­lars in­jected into the SA econ­omy. Bol­ster­ing con­fi­dence in the project’s suc­cess is the unique com­bi­na­tion between in­no­va­tive and en­vi­ron­men­tally- com­pli­ant tech­nol­ogy, and ac­cess­ing the ideal site.

An ex­pert in­de­pen­dent re­view in­cor­po­rated into the state gov­ern­ment’s en­vi­ron­men­tal ap­proval for PCD op­er­a­tions ear­lier in 2018 con­cluded, “the Leigh Creek site rep­re­sents one of the strong­est op­por­tu­ni­ties for low risk com­mer­cial UCG any­where in the world”. LCK Man­ag­ing Di­rec­tor, Phil Stave­ley says the pos­i­tive ex­pert anal­y­sis bol­sters the project’s cred­i­bil­ity, but LCK must still prove to the reg­u­la­tor, stake­hold­ers and the mar­ket it can demon­strate it can pro­duce com­mer­cial quan­ti­ties of gas safely with min­i­mal im­pact to the en­vi­ron­ment.

“Our cur­rent fo­cus is on build­ing, oper­at­ing and de­com­mis­sion­ing a small scale Pre-Com­mer­cial Demon­stra­tion to show we can pro­duce com­mer­cial quan­ti­ties and qual­i­ties of syn­gas and op­er­ate safely with min­i­mal im­pact to the en­vi­ron­ment,” Mr Stave­ley said. “Data from the PCD will then as­sist in the de­sign of a larger com­mer­cial fa­cil­ity. “Sub­ject to re­ceiv­ing reg­u­la­tory ap­proval, we plan to be­gin op­er­a­tion of the PCD dur­ing quar­ter 3 2018.”

With a large, eco­nomic re­source re­main­ing and on land al­ready used for min­ing, LCK hopes to bring sus­tain­abil­ity and pros­per­ity to the town of Leigh Creek and sur­round­ing re­gion The site at Leigh Creek is one of the best in the world for an ISG op­er­a­tion and has been graded against key cri­te­ria out­lined by the Lawrence Liver­more Na­tional Lab­o­ra­to­ries (LLNL) in the US. Base­line test­ing (ge­ol­ogy and ground­wa­ter) by LCK has con­firmed this.

Points of di er­ence to other ISG projects in­clude the re­mote lo­ca­tion and lack of land use con­flict, a deep (between 500m and 700m) and thick seam (10-20m) coal re­source, suit­able ge­ol­ogy (thick mud­stone over­bur­den with no fault­ing ex­tend­ing to sur­face) and hy­dro­ge­ol­ogy (no aquifers or users of site ad­ja­cent ground­wa­ter).

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