Published on 18/12/2019 • Category:
TIDMCIA
18 December 2019
Clean Invest Africa
CASA Investment Update
Clean Invest Africa plc (NEX: CIA) is pleased to provide an investor update
regarding its current holding in the CoalTech Group of Companies.
Highlights
* Successful preliminary testwork programs with two large major listed South
African coal consumers.
* CASA has successfully produced pellets that have been analysed by these two
companies and in both cases the results were deemed suitable to proceed to
the next stage of testing. The future potential commercial opportunities
are transformational in terms of scale and value.
* In the first case CASA has the near term opportunity to produce a bulk
sample in the range of 30,000 tonnes to 60,000 tonnes to assess with the
client the potential of a longer term supply arrangement for a full scale
power station. A long term supply arrangement would be of significant
commercial value to the Company.
* In the second case, if commercially successful, the client will use
material which is already mined to supplement their existing feedstocks and
CASA can assist in minimizing future stockpiling of excess fine coal from
the slurry dams, reducing rehabilitation costs, and related environmental
liabilities. A long term relationship would justify the construction of a
bespoke large scale commercial plant at the client location.
Background
CASA (Coal Agglomeration South Africa (Pty) Ltd) is currently involved in
preliminary testwork programmes with two major listed South African coal
consumers who have expressed an interest in assessing the viability of using
CASA's technology to produce pelletized coal fines. CASA has successfully
produced pellets that have been analysed by these two companies and in both
cases the results were deemed suitable to proceed to the next stage of testing.
This next phase involves the production of a larger bulk samples for further
testing.
In the first case CASA has been requested to source suitable fines, and to
produce a 6 tonne sample for a pilot scale combustion test, and then if
successful, a bulk sample in the range of 30,000 tonnes to 60,000 tonnes for a
full scale power station combustion trial.
In the second case CASA is using reclaimed fines from the client's own existing
slurry dams which will then be agglomerated and reintroduced into their
gasification process feedstock. CASA is currently producing a 1 tonne sample of
hard, waterproof pellets for evaluation by the client. If commercially
successful the client will use material which is already mined to supplement
their existing feedstocks. In addition, future stockpiling of excess fine coal
from the slurry dams will be minimised, as will the associated rehabilitation
costs, and related environmental liabilities.
With 16million tonnes of estimated fine coal being produced annually by the
South African coal mining industry, CASA's first client has identified an
opportunity to supplement their existing power station feed with suitable
pellets. To this end, CASA has been requested to source suitable fines, and to
produce firstly a 6 tonne sample for a pilot scale combustion test, and then if
successful, a bulk sample of 30,000 to 60,000 tonnes for a full scale power
station combustion trial.
CASA's second opportunity involves using reclaimed fines from the Client's own
existing slurry dams which will then be agglomerated and reintroduced into
their gasification process feedstock. CASA is currently producing a 1 tonne
sample of hard, waterproof pellets for evaluation by the client. If successful,
a larger bulk sample will be prepared. By doing this, the client will use
material which is already mined to supplement their existing feedstocks. In
addition, stockpiling of excess fine coal from the slurry dams will be
minimised, as will the associated rehabilitation costs, and environmental
liabilities.
CASA will be using their unique binder and testwork facility, situated at
Bulpan, near Emalahleni, to produce these bulk samples. This facility consists
of both a laboratory scale pelletizing unit for smaller samples as well as a
fully operational production plant capable of producing 5,000 tonnes per month
of dried and water resistant pellets.
Whilst CASA's preferred operating model is to partner with their clients in
these types of projects, CASA will also consider a toll treatment option, with
a BOO (Build, Own, Operate) being a further possible option.
Filippo Fantechi, Non-Executive Chairman, of Clean Invest Africa plc commented
that:
"We came away from the CASA update with a new sense of excitement as to the
potential scale of CASA in South Africa. These preliminary successful trials
demonstrate both the enormous scale of potential demand and the ability of CASA
to fill such demand. With a working commercial scale plant and test lab both
now operational we look forward with some considerable excitement to the
advancement of these two customer trials and their enormous future potential.
We are confident we can turn these types of opportunities into commercial
contracts and expand further in both South Africa and via Coaltech, globally.
Given our views on CASA and Coaltech as stated above, we see this as a
resounding endorsement of our investment to date and relish the future
opportunity. I would like to thank the executive team and staff at CASA for
their hard work in 2019 and believe 2020 will be the year in which we will
begin to reap the rewards of patience and belief in our investment in Coaltech
and CASA."
Forward Looking Statements
This announcement contains forward-looking statements relating to expected or
anticipated future events and anticipated results that are forward-looking in
nature and, as a result, are subject to certain risks and uncertainties, such
as general economic, market and business conditions, competition for qualified
staff, the regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political jurisdiction,
uncertainties regarding the results of exploration, uncertainties regarding the
timing and granting of prospecting rights, uncertainties regarding the
Company's ability to execute and implement future plans, and the occurrence of
unexpected events. Actual results achieved may vary from the information
provided herein as a result of numerous known and unknown risks and
uncertainties and other factors.
The Directors of the Company accept responsibility for the content of this
announcement.
ENQUIRIES:
Company
Clean Invest Africa PLC
Sam Preece - Executive Director
Telephone: 020 3130 0674
Noel Lyons - Executive Director
Telephone: 020 7486 6558
Corporate Adviser
Peterhouse Capital Limited
Guy Miller
Telephone: 020 7220 9795
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