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Native Americans strike coal deal Native Americans strike coal deal
(1 day later)
An American Indian tribe has struck a 50-year deal with an Australian company to build a $7bn (£3.6bn) plant that would convert coal into liquid fuel.An American Indian tribe has struck a 50-year deal with an Australian company to build a $7bn (£3.6bn) plant that would convert coal into liquid fuel.
The development between the Crow tribe of Montana and Australian-American Energy, will initially see up to 50,000 barrels of fuel produced.The development between the Crow tribe of Montana and Australian-American Energy, will initially see up to 50,000 barrels of fuel produced.
One of the first projects of its kind in the US, output at the Many Stars plant could hit 125,000 barrels daily.One of the first projects of its kind in the US, output at the Many Stars plant could hit 125,000 barrels daily.
Various other coal-to-fuel projects are planned for US states, including Ohio.Various other coal-to-fuel projects are planned for US states, including Ohio.
Mining-free zoneMining-free zone
Construction will begin in several years and will use coal from a mine that is yet to be developed on the Indians' reservation.Construction will begin in several years and will use coal from a mine that is yet to be developed on the Indians' reservation.
The tribe has 12,000 members and the Crow will pocket up to 50% of the profits from the plant after investors make up their costs.The tribe has 12,000 members and the Crow will pocket up to 50% of the profits from the plant after investors make up their costs.
It is estimated the tribe could receive up to $1bn a year - a major economic boost given its annual budget is currently $26m.It is estimated the tribe could receive up to $1bn a year - a major economic boost given its annual budget is currently $26m.
It means we will become self-sufficient as a tribe Carl VenneCrow Tribe chairmanIt means we will become self-sufficient as a tribe Carl VenneCrow Tribe chairman
The Crow's reservation is located above some of the US's largest coal reserves and some estimate there may be as much as 9bn tonnes underneath.The Crow's reservation is located above some of the US's largest coal reserves and some estimate there may be as much as 9bn tonnes underneath.
To date, the area has remained largely free of mining.To date, the area has remained largely free of mining.
Self-sufficiencySelf-sufficiency
Both the tribe and Australian-American Energy have anticipated opposition from environmental groups, and have said the Many Stars plant will be able to capture 95% of the carbon dioxide it emits.Both the tribe and Australian-American Energy have anticipated opposition from environmental groups, and have said the Many Stars plant will be able to capture 95% of the carbon dioxide it emits.
But Crow chairman Carl Venne said this was a chance for the community to escape poverty.But Crow chairman Carl Venne said this was a chance for the community to escape poverty.
"People have to realise this is one of the poorest counties in the whole nation," said Venne."People have to realise this is one of the poorest counties in the whole nation," said Venne.
"It means we will become self-sufficient as a tribe," he added."It means we will become self-sufficient as a tribe," he added.
The US is expected to see a number of similar coal-to-liquid plants in the coming years and many have been proposed or are still being considered.The US is expected to see a number of similar coal-to-liquid plants in the coming years and many have been proposed or are still being considered.
West Virginia and Wyoming, Ohio, are among the locations which could accommodate similar projects. West Virginia, Wyoming, and Ohio are among the locations which could accommodate similar projects.
Australia-American Energy is a subsidiary of Australian Energy.Australia-American Energy is a subsidiary of Australian Energy.
Australian Energy chief executive, Allan Blood, has already embarked on two similar projects in Australia including a $2bn plant to convert coal to liquid fertilizer, and another which was recently snapped up by Shell and Anglo American. Australian Energy chief executive, Allan Blood, has already embarked on two similar projects in Australia including a $2bn plant to convert coal to liquid fertiliser, and another which was recently snapped up by Shell and Anglo American.