Chinese engineering development group DADI has completed a $24 million investment in MetroCoal, purchasing 32 million shares in the emerging Australian energy company.
The DADI chairman Dongping Wang will now join the MetroCoal board as part of the share placement.
MetroCoal chairman David Barwick said finalizing the placement was an exciting phase in the development of the company’s Surat Basin thermal coal projects. “We could not have wished for a more professional partner in DADI and we look forward to Mr Wang joining our Board."
Hong-Kong listed DADI undertakes work in open cut and underground coal mine design, processing plant design, coal processing research and development and engineering, procurement and construction projects.
The company has been involved in many significant coal projects including the completion of more than 30 open cut and underground mines, the design and supply of more than 70 coal processing plants and three water slurry treatment plants.
DADI’s experience will help MetroCoal progress its 100% owned coal projects in South East Queensland. The company aims to build a major coal business based on exporting thermal coal from both underground and open cut mining in the Surat Basin.
MetroCoal holds coal exploration tenements in the region covering about 4000 sqkm. These tenements are down dip of well known resources including Wandoan, Elimatta, Cameby Downs and Worri.
Geological information from historic drilling programs and its own drilling results indicate the company has an exploration target of between 2.5 and 3.5 billion inferred tonnes of coal.