The Leigh Creek Energy Ltd (ASX: LCK) share price is on the move for the first trading day of 2022. This comes after the energy producer announced it has passed a milestone hurdle for its in-situ gasification project.
At the time of writing, Leigh Creek Energy shares are up 12.5% to 18 cents.
Leigh Creek granted Section 23 authorisation
Investors are driving the company’s shares higher after it received approval for development in the Leigh Creek area.
According to its release, the company has been granted authorisation under the Aboriginal Heritage Act by the Minister for Aboriginal Affairs and Reconciliation.
Securing this licence enables Leigh Creek Energy to conduct exploration activities within the former Leigh Creek coalfield in South Australia. This includes the gasification of underground coal deposits using in-situ gasification techniques, drilling of wells, geophysical surveys, and other methods.
The South Australian government allowed the permit after consulting with the local people and the traditional owners of the land. In return, Leigh Creek Energy must minimise disturbance, complying with state government requirements to deliver an environmentally safe project.
Commenting on the news driving the Leigh Creek Energy share price, managing director Phil Staveley commented:
We are pleased with the delegate of the South Australian Minister for Aboriginal Affairs and Reconciliation’s positive decision on our project that recognises the significant economic benefits for shareholders, the state economy and Australia’s wider food security.
Our commitment, as a company, is to make a positive difference in the areas and the communities in which we operate. To leave behind a better place than we first encountered. What we achieve in the Leigh Creek area will be the proof.
Leigh Creek Energy share price summary
The Leigh Creek Energy share price has gained 3% since the start of 2021. The company’s shares hit a 52-week high of 31 cents in April 2021, before treading lower in the months after.
Leigh Creek Energy commands a market capitalisation of roughly $147.26 million and has approximately 866.21 million shares on issue.
The post Why the Leigh Creek Energy (ASX:LCK) share price is powering ahead 12% today appeared first on The Motley Fool Australia.
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