Environmental Clean Technologies Limited (ASX:ESI) wishes to announce that it has received confirmation from Thang Long Investment and Commercial Joint Stock Company (TinCom) that Vietnam’s Ministry of Planning and Investment has issued the necessary licence for the company to proceed with its investment in the production of Coldry pellets in Australia.
Under the terms of the Coordination Agreement (announced 22 June 2009) this plant will be constructed in stages, with an initial production capacity of 2 million tonnes of Black Coal Equivalent Coldry Pellets per annum, expanding to reach 20 million tonnes by 2020, with ESI receiving a $5 per tonne royalty, for 50 years, and a 10% free carry equity stake in the project vehicle.
ESI’s next steps leading to construction of the plant are as follows:
- Establishment of the Special Purpose Vehicle (SPV) to receive the now approved funds from TinCom
- Finalisation of the necessary agreements that secure heat and raw coal supplies
- Undertaking of the detailed, local, project feasibility study
- Assessment of feasibility study conclusions
- Decision on project commencement
“We are confident in the commercial viability of our technology, and ability to secure heat and coal for this project.” said ESI Chairman, Dave Woodall. “The Vietnamese Government’s approval of TinCom’s investment will now enable us to move this significant deal to the next stage, the establishment of the SPV and receipt of funding”
“Investment will enable the export of high quality Black Coal substitute, produced from lignite, that is of equal or higher energy value than most NSW black coal exports, and has characteristics that will reduce CO2 and sulphur emissions from consuming power stations.” said Chief Executive, Kos Galtos.
“We shall be meeting TinCom executives this week and shall be providing our shareholders with a detailed update on this project, our technologies and our wider commercial strategy at our upcoming Annual General Meeting.”