Lignite Introduction

L&M Lignite Limited currently has five exploration permits covering 210 square kilometres in Hawkdun, Mataura, Edendale, Morton Mains, Waimatua, Kaitangata and Ashers Waituna.  All are located in the South Island of New Zealand.  We have identified resources of approximately 2 billion (plus privately held coal which may be able to be acquired).  We are carrying out further drilling, coal quality determination, and assessing the mining potential of the resources.  Environmental and feasibility studies into the production of liquid fuels, petrochemicals, electricity generation and methanol are being conducted.

Over 80% of New Zealand’s coal resources are represented as lignite deposits in Southland and Central Otago. These represent world class lignite resources which have thirty times the energy content of the Maui gas field, or some 100,000 petajoules. Lignite high quality properties with low sulphur and low ash. The in-ground lignite resources in Southland and Otago are now estimated at around 11 billion tonnes, of which 7 billion are recoverable. Potential utilisation of the lignite resource is as electricity energy generation, synthetic fuels, fertilizers and hydrogen. Lignite will play a strategic role in New Zealand’s energy future.

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