Clean Invest Africa Plc Commencement of Commercial Production
04 Luglio 2022 - 8:00AM
UK Regulatory
TIDMCIA
4 July 2022
CLEAN INVEST AFRICA PLC
("Clean Invest Africa", the "Group" or the "Company")
CoalTech Announces Commencement of Commercial Production
CoalTech to commence commercial coal production, initially 3,500 tonnes per
month and rising to 7,000/7,500 tonnes per month in 2023.
Clean Invest Africa Plc is pleased to announce the commencement of commercial
production by its clean coal subsidiary, CoalTech. The commencement of this
commercial production strategy involves the full operationalisation and
commercialisation of its existing pelletising plant at its South African Bulpan
site. Previously the plant was, as announced, used extensively as a test
facility for potential large-scale clients. CoalTech believes it has
successfully completed sufficient client testing with an almost 100% client
satisfaction outcome and that the time is now right to commence in-house
commercial production.
CoalTech is planning to use its plant at its Bulpan site in South Africa to
produce commercial quantities of coal with a target of producing 7,000-7,500
tonnes per month in 2023, generating revenue of approximately USD450,000 -
USD500,000 monthly and with an annual estimated net profit in the region of
USD1.2m.
CoalTech anticipates the first production and sales of coal pellets to occur in
September 2022. Contracts associated with suppliers, operational readiness and
commencement of production activities of the Bulpan Plant are currently being
discussed with potential partners, which will be responsible for the supply of
coal fines and for the sale of pellets and these arrangements should be
finalised shortly. Further announcements will be made in due course.
Initial production volumes, based on a single shift only, are expected to ramp
up over 8-12 weeks to a regular output volume of 3,500 tonnes per month. Once
these targets are achieved, and with approximately USD250,000 in capital
expenditure, and improvements to local infrastructure, this will lead to a
double shift operation aiming for 7,000-7,500 tonnes per month of regular
output.
This commercial production strategy is in addition to CoalTech's current
strategy of running testing for potential large-scale customers. Significant
large scale client testing has taken place over the prior years and a final
large-scale test is currently being completed. These tests have been
overwhelmingly successful. As a result of the successful testing, discussions
continue with a number of potential customers. These discussions have been seen
to involve very long lead times. For example, the recent successful test and
subsequent discussions in Columbia were expected to be concluded in June 2022.
These are progressing, albeit slowly, and CoalTech is optimistic that these
will lead to a commercial agreement. Any one of these potential arrangements
under discussion would be on a large scale (for example 2 x 28,000 tonnes per
month are under discussion with one potential client). In addition, such
contracts would be long term with likely output over 10-20 years and hence game
changing in scale and scope for CoalTech if commercial terms are reached.
CoalTech will continue to advance these commercial discussions in parallel with
its commercial production strategy.
The opportunity for CoalTech to produce and sell output is currently too
attractive to ignore. There is a global spike in demand for coal, and
substantially increased selling prices of coal have improved the business case
to self-produce at Bulpan. Should a testing customer nevertheless wish to
conduct further testing, commercial terms can always be agreed based on a
number of options. CoalTech has developed and plans, subject to cash flow
generation, to commission a mobile testing plant with a capacity of
approximately 500 tonnes per month. CoalTech currently has a testing device for
much smaller volumes which it already uses for clients as required.
Shaikh Mohamed Abdulla Khalifa AlKhalifa, Chairman of Clean Invest Africa
remarked that "this commercial production strategy is a very significant
development for CoalTech with potential for cash flow and profitability in the
near term, whilst in parallel enabling CoalTech to advance its negotiations for
much larger scale commercial agreements, which upon agreement will be game
changing."
Filippo Fantechi Founder and CEO added that "the Company plans to marshall all
available resources with commercial rigour to ensure production and sales
targets are met at what is a most exciting time for CoalTech."
The Directors of the Company accept responsibility for the contents of this
announcement.
ENQUIRIES :
Clean Invest Africa plc
Filippo Fantechi (Executive Director) +973 3969 6273
Shaikh Mohamed Abdulla Khalifa AlKhalifa (Non-Executive Chairman) +973 3969
2299
Peterhouse Capital Limited
Corporate Adviser +44 20 7469 0930 Guy Miller/Mark Anwyl
END
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