| China is eager to address one of the primary | | | | Tunaye Sai. PCE reported in a news release on |
| culprits behind its alarming coal mining fatalities, as | | | | Wednesday, "The PACE-MDC joint venture group |
| evidenced by the Pre-Mining Degasification | | | | is currently preparing a business plan for the |
| Symposium held in South China's Guizhou province | | | | immediate development of this new strategy in |
| on March 31st and April 1st. Sponsored by the | | | | order to address the demand, which arose from |
| province's Coal Mines Administration Bureau and | | | | the attendees at this symposium." |
| the Coal Mine Safety Inspection and Supervision | | | | "They are having problems in their mines," |
| Bureau, coal mining executives gathered in | | | | explained Tunaye Sai, who is also a member of |
| Guiyang, a modest-sized city (by China's | | | | the Canadian Institute of Mining, Metallurgy and |
| standards) of more than three million people, to | | | | Petroleum. Because they have not been able to |
| discuss how the latest foreign technologies could | | | | effectively degasify their mines, four of the |
| help degasify China's 2,000 coal mines, both | | | | attending Chinese coal mining companies |
| improving mine safety and reducing China's global | | | | immediately approached Tunaye Sai and Mitchell |
| output of air pollution. More than 80 | | | | about using this state-of-the-art drilling technology. |
| representatives from 40 coal mines attended in | | | | Earlier this year, PCE and MDC announced they |
| China's second largest coal-producing province to | | | | were forming a joint venture to offer MDC's |
| find out about the latest foreign technology | | | | proprietary Dymaxion® drilling technology to |
| transfers, which might help reduce coal mining | | | | companies in China, to help degasify their coal |
| deaths. | | | | mines. MDC is Australia's largest privately owned |
| Over the centuries as organic matter is | | | | drilling company, and their Dymaxion technology |
| converted to coal, methane, also known as CH4 | | | | has been widely discussed by coal mining insiders. |
| and the primary constituent in natural gas, is | | | | The PCE and MDC joint venture company has the |
| produced during this process and stored in | | | | exclusive rights to use the Dymaxion technology |
| pockets within a coal seam. For every ton of coal | | | | in China. |
| produced, during the "coalification" process, more | | | | In a tape-recorded interview, Tunaye Sai told |
| than 5000 cubic feet of methane is created. Coal | | | | StockInterview, "The combination of a horizontal |
| mining releases this methane into the atmosphere. | | | | and vertical intersection draws the methane gas |
| Over 90 percent of methane emissions come | | | | from the coal seam and captures it at the |
| from underground coal mining. Because gas | | | | surface." Australian newspapers have been |
| content is greater with depth, safety hazards | | | | exuberant over the Dymaxion® technique, |
| increase during the underground coal mining | | | | calling it "revolutionary" and "radical." In its headline, |
| process. Degasifying coal mines has been proven | | | | one Australian newspaper called MDC's |
| to help make those underground coal mines safer | | | | state-of-the-art G-55 drill rig "the Lamborghini of |
| for miners. | | | | drill rigs," and remarked how their drill rigs offered |
| Volatile gases produced during the coal mining | | | | improved flexibility and cost efficiency. |
| process reportedly kill more than 15 miners every | | | | The Dymaxion surface to in-seam (SIS) drilling |
| day in China, about 80 percent of the world's coal | | | | method uses modified multipurpose mineral drill |
| mining deaths. Prime Minister Wen Jiabao, a mining | | | | rigs, specially designed bottom-hole assemblies and |
| engineer by training, has demanded China improve | | | | specially trained personnel. The technique involves |
| conditions for Chinese coal miners. Critics, such as | | | | drilling a 60 to 90 degree hole from the surface |
| the Chinaworker.org, say the "underlying cause is | | | | and steering it through a medium radius bend to |
| a lack of investment in degasification equipment." | | | | enter the target coal seam horizontally. The |
| The website claims, "Managers calculate that it's | | | | 96mm hole is then steered for up to 1200 |
| cheaper to pay out meager death benefits to | | | | meters in the seam towards a previously drilled |
| miners' families than (to) raise investment." The | | | | vertical production well. A homing device, lowered |
| Economist magazine reported that Chinese coal | | | | down the vertical well to the target seam, aids |
| miners make as little as $60/monthly. | | | | the intersection with the vertical well. The vertical |
| China is also concerned about its air emissions | | | | well is also equipped with a suitable pump to |
| from coal mining. Worldwide, the coal mining | | | | dewater the seam. After the hydrostatic head |
| industry released over 436 million metric tons of | | | | has been sufficiently lowered, the methane gas |
| carbon dioxide equivalents in 2000. That | | | | will flow to the surface. Newspaper reports also |
| accounted for about 8 percent of the total | | | | say this technique allows for significant savings |
| industrial methane emissions that year. China, | | | | over alternate underground gas drainage drilling |
| Russia, Poland and the United States account for | | | | methods. |
| over 77 percent of coal mining methane | | | | The Dymaxion technology obviously turned heads |
| emissions. Through the year 2020, China's share | | | | at the recent Gasification Symposium. "One of the |
| of worldwide emissions will jump to 45 percent. | | | | companies is a big company, mining 10 million tons |
| These emissions could be severely reduced if | | | | of coal per year," said Tunaye Sai. "Last |
| Chinese coal mines captured the methane gas for | | | | December, 12 people died in one of the coal |
| use in meeting its soaring energy needs, rather | | | | mining company's tunnels." He explained that when |
| than vented into the atmosphere each time a | | | | coal miners are opening a tunnel, the gas comes |
| new coal tunnel is opened. | | | | out - sometimes explosively. "By using the |
| One of the major draws at the Guiyang | | | | Dymaxion technique, they can let the gas out |
| Pre-Mining Degasification Symposium were | | | | before they begin mining a tunnel," he added. |
| presentations about the latest coalbed methane | | | | Discussions with the Chinese coal companies are in |
| drilling innovation by Tunaye Sai, Director of China | | | | the initial stages. "They want to give us a block - |
| Operations for Pacific Asia China Energy (TSX: | | | | not one that is being mined now, but one that |
| PCE; Other OTC: PCEEF), and Nathan Mitchell of | | | | may be mined in a few years," said Tunaye Sai. |
| Mitchell Drilling Company (MDC) in Brisbane, | | | | "We're working on an arrangement right now |
| Australia. Coal mining companies opened | | | | because they are very interested." He explained |
| discussions with PCE after their presentation. | | | | that the relationship would involve a continuous |
| "Executives from fifty mines showed interest in | | | | process. "We wouldn't just drill it and then abandon |
| the Dymaxion® drilling technology to improve | | | | it," he added. "We will be making sure that the gas |
| mining safety," said Tunaye Sai. All of them | | | | will come out continuously and monitoring it. |
| showed interest? "All of them," responded | | | | |