Shareholder Update - India Activity
- TEF study completed on time
- Positive underlying business case for advancement of Coldry and Matmor technologies is in line with expectations
- Formal presentation to Indian partners to follow
Further to previous announcements throughout the year about the TEF, and in line with earlier stated timeframes for its completion by 30 June 2016, the study has been completed on time.
The study, which delivers a robust techno-economic assessment in line with expectations, is a key deliverable under the Tripartite Collaboration Agreement announced on 27 January 2016 and an important precursor to developing capital estimates to an appropriate level necessary to define and trigger financial commitments ahead of project execution.
The Company has advised its Indian partners, NLC and NMDC, that the study is complete and have provided a Summary Report ahead of a formal presentation and tabling of the full report.
ECT Managing Director Ashley Moore commented "We're extremely pleased with the study, and the positive underlying business case for the advancement of the Coldry and Matmor technologies. And while we're keen to share more details on the outcomes of the report with the broader market, naturally we first need to brief NLC and NMDC fully. It's not appropriate to front-run the results ahead of their review."
"We can say that Dastur has been rigorous and robust in developing the operating and capital cost, which is sensible and highly appropriate at this stage of development. Even with this level of conservatism, the key financial metrics indicate a distinct advantage, subject to successful scaleup."
"The context of the TEF requirement is important. It sets the vision, allows us to start collectively with the end in mind, then work to fulfil that vision. As previously announced Coldry has been developed to a point where the core design for the demonstration-scale plant is complete, which has allowed us to develop the capital and operational estimates to an appropriate level of accuracy. From a design point of view, we are ready to 'go build' Coldry. On the other hand, Matmor is currently developed to a semi-continuous, test plant scale, with limited automation. The TEF is about lifting the level of detail around Matmor to arrive at an appropriate view of the commercial potential, underpin the capital and operational estimates and meet the assessment criteria of our partners."
"The report is incredibly detailed, running to a couple of hundred pages, and as such, the face-toface presentation with our partners is a major step in disseminating the information in a manner that is easier to digest and facilitates a timely review."
"We expect to have a better understanding of timing for our partner's review process after our briefing, which we're currently in the process of scheduling with the parties."
Further information will be provided on the TEF and its outcomes following the face-to-face meeting with NLC and NMDC.
About Environmental Clean Technologies Ltd
Environmental Clean Technologies Limited (ASX:ESI) is in the business of commercialising leading-edge coal and iron making technologies, which are capable of delivering financial and environmental benefits.
We are focused on advancing a portfolio of technologies, which have significant market potential globally.
ECT's business plan is to pragmatically commercialise these technologies and secure sustainable, profitable income streams through licencing and other commercial mechanisms.
Environmental Clean Technologies Ltd