Latest Technology Transfer Could Reduce Chinese
Coal Mining Deaths
Author: James Finch

Summary: More than 15 Chinese coal miners die every day, mainly
from gas explosions released when new coal tunnels are opened. A
revolutionary new drilling technology from Australia may help
save Chinese coal miners' lives and also help reduce air
pollution by capturing the methane before it spreads into the
atmosphere.

China is eager to address one of the primary culprits behind
its alarming coal mining fatalities, as evidenced by the
Pre-Mining Degasification Symposium held in South China's
Guizhou province on March 31st and April 1st. Sponsored by the
province's Coal Mines Administration Bureau and the Coal Mine
Safety Inspection and Supervision Bureau, coal mining
executives gathered in Guiyang, a modest-sized city (by China's
standards) of more than three million people, to discuss how the
latest foreign technologies could help degasify China's 2,000
coal mines, both improving mine safety and reducing China's
global output of air pollution. More than 80 representatives
from 40 coal mines attended in China's second largest
coal-producing province to find out about the latest foreign
technology transfers, which might help reduce coal mining
deaths.

Over the centuries as organic matter is converted to coal,
methane, also known as CH4 and the primary constituent in
natural gas, is produced during this process and stored in
pockets within a coal seam. For every ton of coal produced,
during the "coalification" process, more than 5000 cubic feet
of methane is created. Coal mining releases this methane into
the atmosphere. Over 90 percent of methane emissions come from
underground coal mining. Because gas content is greater with
depth, safety hazards increase during the underground coal
mining process. Degasifying coal mines has been proven to help
make those underground coal mines safer for miners.

Volatile gases produced during the coal mining process
reportedly kill more than 15 miners every day in China, about
80 percent of the world's coal mining deaths. Prime Minister
Wen Jiabao, a mining engineer by training, has demanded China
improve conditions for Chinese coal miners. Critics, such as
the Chinaworker.org, say the "underlying cause is a lack of
investment in degasification equipment." The website claims,
"Managers calculate that it's cheaper to pay out meager death
benefits to miners' families than (to) raise investment." The
Economist magazine reported that Chinese coal miners make as
little as $60/monthly.

China is also concerned about its air emissions from coal
mining. Worldwide, the coal mining industry released over 436
million metric tons of carbon dioxide equivalents in 2000. That
accounted for about 8 percent of the total industrial methane
emissions that year. China, Russia, Poland and the United
States account for over 77 percent of coal mining methane
emissions. Through the year 2020, China's share of worldwide
emissions will jump to 45 percent. These emissions could be
severely reduced if Chinese coal mines captured the methane gas
for use in meeting its soaring energy needs, rather than vented
into the atmosphere each time a new coal tunnel is opened.

One of the major draws at the Guiyang Pre-Mining Degasification
Symposium were presentations about the latest coalbed methane
drilling innovation by Tunaye Sai, Director of China Operations
for Pacific Asia China Energy (TSX: PCE; Other OTC: PCEEF), and
Nathan Mitchell of Mitchell Drilling Company (MDC) in Brisbane,
Australia. Coal mining companies opened discussions with PCE
after their presentation. "Executives from fifty mines showed
interest in the Dymaxion® drilling technology to improve mining
safety," said Tunaye Sai. All of them showed interest? "All of
them," responded Tunaye Sai. PCE reported in a news release on
Wednesday, "The PACE-MDC joint venture group is currently
preparing a business plan for the immediate development of this
new strategy in order to address the demand, which arose from
the attendees at this symposium."

"They are having problems in their mines," explained Tunaye
Sai, who is also a member of the Canadian Institute of Mining,
Metallurgy and Petroleum. Because they have not been able to
effectively degasify their mines, four of the attending Chinese
coal mining companies immediately approached Tunaye Sai and
Mitchell about using this state-of-the-art drilling technology.
Earlier this year, PCE and MDC announced they were forming a
joint venture to offer MDC's proprietary Dymaxion® drilling
technology to companies in China, to help degasify their coal
mines. MDC is Australia's largest privately owned drilling
company, and their Dymaxion technology has been widely
discussed by coal mining insiders. The PCE and MDC joint
venture company has the exclusive rights to use the Dymaxion
technology in China.

In a tape-recorded interview, Tunaye Sai told StockInterview,
"The combination of a horizontal and vertical intersection
draws the methane gas from the coal seam and captures it at the
surface." Australian newspapers have been exuberant over the
Dymaxion® technique, calling it "revolutionary" and "radical."
In its headline, one Australian newspaper called MDC's
state-of-the-art G-55 drill rig "the Lamborghini of drill
rigs," and remarked how their drill rigs offered improved
flexibility and cost efficiency.

The Dymaxion surface to in-seam (SIS) drilling method uses
modified multipurpose mineral drill rigs, specially designed
bottom-hole assemblies and specially trained personnel. The
technique involves drilling a 60 to 90 degree hole from the
surface and steering it through a medium radius bend to enter
the target coal seam horizontally. The 96mm hole is then
steered for up to 1200 meters in the seam towards a previously
drilled vertical production well. A homing device, lowered down
the vertical well to the target seam, aids the intersection with
the vertical well. The vertical well is also equipped with a
suitable pump to dewater the seam. After the hydrostatic head
has been sufficiently lowered, the methane gas will flow to the
surface. Newspaper reports also say this technique allows for
significant savings over alternate underground gas drainage
drilling methods.

The Dymaxion technology obviously turned heads at the recent
Gasification Symposium. "One of the companies is a big company,
mining 10 million tons of coal per year," said Tunaye Sai. "Last
December, 12 people died in one of the coal mining company's
tunnels." He explained that when coal miners are opening a
tunnel, the gas comes out – sometimes explosively. "By using
the Dymaxion technique, they can let the gas out before they
begin mining a tunnel," he added.

Discussions with the Chinese coal companies are in the initial
stages. "They want to give us a block – not one that is being
mined now, but one that may be mined in a few years," said
Tunaye Sai. "We're working on an arrangement right now because
they are very interested." He explained that the relationship
would involve a continuous process. "We wouldn't just drill it
and then abandon it," he added. "We will be making sure that
the gas will come out continuously and monitoring it."

Tunaye Sai said that Pacific Asia China Energy was targeting
the larger mines. "Among them, about ten companies mine about
four million tons per year or more. Those are the ones we are
talking to." PCE has ordered the drilling equipment, and it
should arrive in China around October. "As soon as it is there,
we can implement our plan, maybe in November or December." He
told us, "They have been asking us to demonstrate the equipment
for them." This may be an unexpected revenue surprise for
Pacific Asia China Energy, and a blessing for Chinese coal
miners whose lives may be spared, thanks to this latest
technology transfer to China.


About The Author: James Finch contributes to
http://StockInterview.com and other publications. Feedback to
James Finch is welcome and encouraged. Please contact him at
jfinch@stockinterview.com. The above article can be read in its
entirety with full graphics and additional data at
http://www.stockinterview.com.