An extract from the CleanTeQ annual report demonstrates the clear path to market that Ionic has for our water and waste water treatment in collaboration with CleanTeQ: http://www.cleanteq.com/investors/annual-reports/
The Clean TeQ Water Division continues to promote and demonstrate our Continuous Ion Exchange Technology (CIF® ) with a particular emphasis on the Chinese water market, the largest and most rapidly growing water treatment market in the world. CIF® makes available a water treatment solution to many Chinese industries including power, mining, oil and gas and municipal.
Clean TeQ has formed a Chinese incorporated joint venture (JV Company) with Jinzhong Hoyo Municipal Urban Investment & Construction Co., Ltd (Hoyo) to pursue water treatment opportunities in China’s Shanxi Province utilising Clean TeQ’s water purification technology. As previously announced, the JV Company has been awarded an initial contract to build, own and operate a Clean TeQ CIF® water treatment plant to treat up to 13,000 tonnes of effluent per day for a 20 year period at a waste water treatment plant owned by Hoyo.
The proposed project contract provides for the JV Company to be paid a service fee of 1RMB per tonne of water treated, subject to a minimum payment for 9,000 tonnes per day. Clean TeQ has actively pursued a build, own and operate business model, targeting generation of long term sustainable cashflows and favourable economic returns. Design and engineering of the plant has been completed and the plans have been submitted to the Shanxi Urban & Rural Planning Design Institute for approval. The Design Institute has provided an initial indication that approval of the plans will be forthcoming, allowing for an environmental impact assessment to be commenced. Final formal approval of the plans and approval of the environmental impact assessment is anticipated to be received shortly with construction anticipated to commence in late 2017.
In May 2017, the Company announced that its wholly owned subsidiary Clean TeQ Water Pty Ltd had been awarded a significant contract by Multotec Process Equipment Pty Ltd (Multotec) to design, procure and commission a Clean TeQ proprietary Continuous Ionic Filtration (CIF® ) wastewater treatment solution at a minerals processing plant currently being constructed in Oman.
The Company has also executed an exclusive Technology Distribution Agreement with Multotec for the African continent. Multotec is a leading provider of high-quality mineral processing equipment and solutions to the mining, mineral processing, petrochemical and power generation industries. Multotec has branches throughout Africa, Australia, Asia, South America and North America. Over four decades of developing, manufacturing, installing and maintaining processing equipment has made Multotec a global leader in custom, application specific mineral processing technology.
The Company has also been contracted on commercial terms to perform feasibility and engineering for a number of other ion exchange water treatment systems including:
• A CIF® wastewater treatment solution to treat tailings water to a standard to allow discharge at a gold mining operation in Australia. The technology removes toxic pollutants sulphate, antimony and arsenic from a waste water stream; and
• A Clean-iX® uranium recovery plant to remove low concentrations of uranium from process liquors at a copper/cobalt processing operation in Africa. Upon delivery of the feasibility and engineering, the Company is confident that at least one of these opportunities will result in a commercial supply contract to deliver a Clean TeQ water treatment solution.
In February 2017, the Company agreed a partnership with Ionic Industries Ltd for the development and commercialisation of graphene-oxide based water filtration technologies. Ionic is a commercialisation partner of Monash University and has secured a licence from Monash for intellectual property relating to a range of graphene oxide based technologies. Graphene oxide (‘GO’) is regarded as a highly versatile industrial material with its ability to form super-strong ultra-thin 2-D matrices.
Researchers at Monash University have developed a method of producing GO which is suitable for the production of water and wastewater filtration products. The method has the potential to be readily and economically scaled to meet commercial needs. The partnership will see Clean TeQ funding a $200,000 programme of works for product development and testing with the Monash research team and at Clean TeQ’s facilities.
Subject to Clean TeQ successfully completing this product development and testing phase prior to 30 September 2018, Clean TeQ may, at its election, form a joint venture with Ionic (75/25 Clean TeQ/Ionic) for the purpose of bringing the products to market in the field of water purification. The joint venture will be funded by the parties according to their pro-rata equity share.