UCG News

UCG could be a game changer in Europe.

I think it's a Buy, and certainly one to watch.

More positive news for WHE. high lights below, More info here

Hungary

The exploitation of mineral raw materials has decreased considerably in Hungary over the past few years. The world financial crisis has hit the construction industry hard, while investment in new highways has stopped.

The red sludge catastrophe that occurred at MAL Hungarian Aluminium Ltd’s underground Halimba bauxite mine in 2010 led to a sharp reduction in bauxite mining and the project is now in the process of being closed.

When the incumbent government came to power in 2010, it strongly promoted the use of internal resources and advocated a decrease in energy imports. It talked up railway development, which had a positive impact on stone mining.

Meanwhile, the application of new technologies linked to coal mining should spur development.

Following a government decision to launch an inquiry into restarting uranium mining, research in this lucrative sector can finally get going once again. An area ripe for development is the Mecsek hills, in the Pécs region, where Australian-based miner Wildhorse Energy Ltd holds uranium licences covering 42.9km2.
Oil and natural gas development, as well as shale gas, could offer further opportunities.


Declining exploitation

Since the beginning of the economic crisis, the exploitation of mineral raw materials in Hungary has slumped. The exceptions are lignite, turf and CO2, naturally present underground.

The most conspicuous decrease has been the drop in construction and aggregates mining – production of clay is down an astonishing 75.8%, aggregates 44.6%, stone 42.1% and other minerals are down around 43%.

Production from the Márkushegy coal mine has decreased considerably and the mine is now earmarked for closure as it has become uncompetitive.

Despite the fact that a strip mine is working in Nagymányok in the Mecsek hills, only a few smaller coal mines have started operations in the Borsod region in northern Hungary.

Altogether, this means that coal mining decreased by 39.8% in 2012. There was also a marked decrease in ore mining, mainly of bauxite and manganese, which dropped by 45.6% last year.

On the other hand, it is worth noting that the lignite-fired Mátra power plant was able to keep both production and usage stable during the worst of the economic crisis.


New initiatives

Hungary witnessed its worst-ever chemical accident in 2010 when toxic red sludge from the Halimba bauxite mine spilled into the neighbouring river after a tailings dam burst in the village of Kolontár.

Regrettably the red sludge, which is a waste product of the chemical processing of bauxite, was registered as mining waste in Hungary and the Halimba mine is now in the process of being closed down.

However, and taking into account the European Union’s (EU) 20-20-20 energy and climate objectives, Hungary’s National Energy Strategy 2030 aims to utilise the best internal mineral resources based on fossil fuel, in order to reduce the country’s dependence on imports. Preparation of coal mining developments based on pure coal technology makes up part of this plan.

Besides traditional mining technologies, testing phases for underground coal gasification (USG) is just one of the ideas on the agenda.

Smaller mines have also been opened and even reopened in order to secure coal supply for the local population, primarily in those areas where inhabitants are relatively poor, such as in the Borsod region.

The most significant of these developments has been the re-opening of the Farkaslyuk mine in the remote northeastern corner of the country. In line with the planned expansion of MVM Ltd’s Paks nuclear power plant, preparations have been initiated to reopen the underground uranium mining close to Pécs in the Mecsek hills.

The first block of the underground holding has already been finished and is suitable for disposing nuclear waste of small and medium-risk categories. Further expansion is taking place in Bátaapáti in the south of the country.

It is essential to develop carbohydrogen mining – oil and natural gas exploitation – in order to moderate Hungary’s energy dependence. To achieve this aim, the country will have to develop new fields to substitute current resources, which are close to exhaustion.

Red Hot Penny Shares RHPS highlights Wildhorse today with a reiteration of a BUY up to 12p."WILDHORSE ENERGY (WHE): Following a report that has concluded that underground coal gasification can provide Hungary with an opportunity to develop its extensive stranded coal reserves and that “no risks were found that would limit its development”, the Hungarian Parliament is expected to give approval before the end of September. In a move to cement its advantage as a European leader in this nascent field, Wildhorse has acquired a second license in Poland while a due diligence study appears to have cleared the way for development of the separate uranium project. BUY UP TO 12p (Today's close: 3.125p) "

MOU with Eon and one other on UCG for Hungary. New licence in Poland. UCG confirmed low risk for Hungary has caused a rise in the SP. More good news expected.

Interesting Press release With a link to UK energy problem and UCG

The cause was a rise on the ASX when the SP went higher than London Aim

All grist to the mill

I will try to Help you with some charts, at least you can see where is going

Thanks for the charts.

I think the legislation announcement from Hungary will be the next news, if that is positive the MOU should become a partnership and things will move along.

The future Uranium price movement is the unknown, maybe we need a crystal ball or chart on that.

This is teetering on the edge.

awaiting legislation changes

latest on Unraniam prices

Yesterdays share buying continues this morning.

Checkout this updated Article

News is expected on parliament approval for UCG and new nuclear reactors.

must be something about to happen

Largest volume for a couple of years.

Level 2 4 vs 1

Heads up AGM tomorrow.

UCG agreement with Hugarian Gov

Very positive start to the new year. Hungarian Government approves UCG which paves the way for a farm in agreement, we are lead to believe they are talking to more than one party. Already in place is a MOU with Eon, rumour has mentioned Linc Energy.
Uranium price is set to rise.

Broker tip Buy at 1.88p Wildhorse Energy (WHE.L, 1.88p) – Speculative Buy Yesterday, Wildhorse Energy announced that the Hungarian Parliament approved the modification of the mining law, which now includes underground coal gasification (UCG) specific regulations setting out a legal framework for the development of UCG projects in Hungary. These regulations have since been put into legal force as of 1st January 2014. The company is currently undergoing discussions with a third party for partnering in these projects. The stock climbed 15.4% in yesterday’s trade. Beaufort Securities view: The inclusion of UCG within the existing Hungarian mining law as a mining method is likely to benefit Wildhorse’s UCG projects in Hungary. The UCG technology offers multiple economic and environmental benefits and the current update would facilitate Wildhorse in availing them. The prominent coal reserves in Hungary add further prospectivity to the project. Securing of a strategy partner would play a crucial role in the company’s further progress on the UCG projects. We feel that the company possesses a strong near-term upside potential and thus, reiterate a Speculative Buy on the stock.

Shares in Wildhorse Energy are up by 134% on news that the Company has requested a trading halt in its Australian Stock Exchange (ASX) listed shares.

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