CEY 0.00% $6.16 centennial coal company limited

CENTENNIAL COAL COMPANY LIMITED 2002-05-27

  1. 4,330 Posts.
    CENTENNIAL COAL COMPANY LIMITED 2002-05-27 ASX-SIGNAL-G
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    HOMEX - Sydney
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    Centennial Coal has today finalised a Memorandum of Understanding
    (MOU) linking a new long-term coal sale agreement with Tohoku
    Electric of Japan to the purchase of carbon credits.
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    Commenting on the MOU, Centennial Coal's Managing Director, Mr Bob
    Cameron, said:
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    "This is a ground breaking initiative providing both important
    economic and environmental benefits."
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    In what is believed to be one of the first trades under Article 3.4
    of the Kyoto Protocol, Centennial Coal will purchase Certified
    Emission Reduction Units ("CERUs") generated from the planting of
    saltbush in far western New South Wales. Centennial Coal will then
    on-sell these carbon credits to Tohoku Electric, one of Japan's
    largest coal consuming electricity generators, thus assisting the
    power utility to meet its obligations under the requirements of the
    Kyoto protocol. The implementation of the sale/purchase of the carbon
    credits is subject to the commencement of an International Emissions
    Trading System.
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    The Saltbush Project has been facilitated by 'Australian Inland
    Energy and Water', a NSW Government owned energy and water supplier
    in far western NSW. The project involves planting up to 1,000
    hectares of land in south western NSW with saltbush, as well as the
    grazing of livestock. Saltbush is an Australian native plant which,
    due to its deep root system and salt tolerance, is ideally suited to
    grow in saline affected areas where it can aid in erosion control.
    The plant is also considered unique because of its ability to
    sequester carbon dioxide from the atmosphere and deliver it back to
    the soil within two years of planting.
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    This innovative project represents an opportunity to not only
    contribute to an economic and sustainable land management system, but
    also sequester global carbon dioxide emissions and create CERUs which
    have the potential to be traded, both in Australia and overseas.
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    "Centennial Coal is the first Australian coal company to formalise
    the future purchase of such CERUs to on-sell to Japanese customers,"
    Mr Cameron said.
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    "This project is a win for the environment, the coal industry, our
    customers and shareholders, as well as the state of NSW."
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    "By purchasing these CERUs and selling them to our customersas
    'bundled' credits or 'GreenCoal', we are making our coal more
    attractive to our customers, as these credits cover their emissions
    and help them meet their obligations under the Kyoto Protocol," Mr
    Cameron said.
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    Mr Cameron confirmed that the agreement with Tohoku Electric was
    concluded in line with current term contract prices and went on to
    say:
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    "Our contract with Tohoku is an expansion of an existing agreement
    and this development clearly strengthens the relationship between our
    two companies. We are confident that today's MOU will be the first of
    many and will position Centennial Coal as a recognised provider of
    'GreenCoal'.
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    Centennial Coal is a publicly listed Australian coal producer,
    operating seven mines in NSW and Queensland which produce five
    million tonnes of coal per annum.
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    A large proportion of this output is thermal coal which is purchased
    by power generators, located both overseas, such as Tohoku electric,
    and in Australia. The Australian market continues to be the largest
    consumer of Centennial's output.
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    For further information contact:
    Mr Bob Cameron
    MANAGING DIRECTOR
    Centennial Coal Company Limited
    Telephone: (02) 9299 8955
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