Media Statement - 22nd August 2008
Newly-formed
Sydney company Crest Mining has announced a significant coal mine investment
in Inner Mongolia, the first of its kind by an Australian company in
the region.
The Heads of Agreement signing occurred at Austrade's Business Club Australia event, which is being used to showcase Australian companies during the Beijing Olympics.
This Agreement gives Crest Mining a 17% farm-in stake in the project, with plans to increase their involvement in the near future.
Crest's investment is an important step for future Australian involvement in the resources-rich autonomous territory of China.
"Australia is a world leader in mining and mining-related industries. Australian expertise and investment can help improve safety, efficiency and yields", said Mr Crean.
"During my recent visit to China I had numerous discussions with Chinese Ministers and officials, all of whom indicated a strong willingness to work with Australia on the development of clean coal and other environmental technology to help China deal with its high pollution levels and to address climate change".
The Yihe Coal project in Inner Mongolia has over 800 million tonnes of underground thermal coal resources.
The mine will have a 5 million tonne per annum high capacity underground mining system delivering quality thermal coal to the Chinese and export markets. China plans to double Inner Mongolia's annual coal output by 2010 (from the 2005 volume of 260 million tons) to 500 million tons of coal a year.
"Inner Mongolia will become an increasingly important coal production base in north China. Inefficient exploitation and utilisation of resources to date has resulted in poor returns in the past and this is where Australian capability, and companies like Crest, can make a difference.
"China's rising energy demands represent an excellent opportunity for innovative Australian companies like Crest to not only help China achieve its goals, but in turn expand trade and create jobs for Australians," Mr Crean said.
Austrade has worked with Crest Chairman Gary Cochrane for over 11 years on a range of resource and consulting projects in China.
Austrade is currently working to harness the excitement and energy of the Beijing 2008 Olympic Games to showcase Australian business capability in China.
More than 3000 Australian and Chinese businesspeople have already attended events at Business Club Australia.
Business Club Australia is the official business program for the Beijing 2008 Olympic Games, utilising the resources of Austrade's Chinese network of 15 offices to bring together Australians and key Chinese officials and businesspeople.
Over 40 Australian companies have won more than 50 Beijing Games related contracts, many with Austrade assistance.