Hungary recognises underground coal gasification as a mining method
Hungary has passed a modification to its Mining Law that sets out a
legal framework for the development of underground coal gasification
projects that could allow it to exploit its extensive stranded coal
reserves.
UCG is now included within the existing law as a mining
method, giving companies the opportunity to apply for a Mining Plot
that would give exclusive long term rights to mine the targeted coal
using the process.
This follows the conclusion of the exploration period following the approval of the exploration final report.
Companies
can also apply for a UCG demonstration licence of up to six months
following the conclusion of the exploration period but prior to the
final application of a Mining Plot.
This allows companies to
prove the technical and geological conditions are right for applying UCG
to a targeted resource before applying for the final licence.
The royalty for UCG will be 2% on the value of the quantity of the utilised mineral resource
Hungary’s
adoption of UCG regulations follows the completion of a study
“Guidelines for Implementing Underground Coal Gasification in Hungary”
that analysed UCG technology, its potential in the country and
environmental considerations.
It also studied the geological
aspects of site selection, risk assessment and legislative aspects of
UCG and its application in Hungary and the rest of the world, providing a
thorough assessment of the commercial and environmental desirability of
UCG application.
UCG, which involves gasifying coal underground
and flowing the resulting gas to surface through production wells, has
been in use since the early 1900s.
It allows stranded coal resources to be developed as it eliminates the need to mine the coal.
Despite this, the process and associated technologies have not gone past the demonstration stage in Australia.
