Environmental Clean Technologies Limited (ASX: ECT) (ECT or Company) provides the following update in regard to NMDC’s board meeting held on 31 January, and the subsequent program to proceed to financial close of the Company’s India project and project commencement.

Key Points:

Progressing the project to financial close 

Further to the Company’s announcement of 24 January 2019, project partner and India’s largest iron ore miner NMDC, held its board meeting late last Thursday (31 January 2019).

The Company subsequently requested a trading halt (31 January 2019) pending the outcome of that meeting, which included the tabling the Research Collaboration Agreement (RCA) commercial terms for ratification of the previously provided in-principle approval to proceed.

The Company’s other partner and project host, NLC India Limited (NLCIL) previously provided their approval of the RCA commercial terms at a board meeting on 14 November 2018

NMDC confirmed that an immediate decision during the meeting was deferred, to allow time for several questions from directors to be answered.

ECT Chairman Glenn Fozard commented, “As with all boards, directors are entitled to seek clarification prior to passing a resolution.

“We understand that the questions were subsequently addressed to the director’s satisfaction, paving the way forward.”

ECT Chief Operating Officer, Jim Blackburn, currently in Chennai, added, “The outcome of NMDC’s board meeting is positive in that it takes us in the right direction, and we don’t anticipate a material impact to the target timeline for financial close”

“Over the past four days we have been closely engaged with all parties to the project and we appreciate that these final steps require patience and commitment from all sides. As a result of these meetings and discussions, we are in clear agreement with our project partners that the process will run its planned course over the balance of February (see table below).”

“Importantly, NMDC’s board meeting and subsequent discussions have provided the confidence for the partners to agree to forge ahead with preparations for ratification, signing and financial close ahead of commencement of this major joint project.” The immediate next steps include ‘freezing’ the RCA, signing of the RCA, subsequent financial close and project commencement, targeted by 31 March 2019.

Financing ECT’s Project Obligation

Under the RCA, ECT is required to make funding commitments to the project including project working capital, resourcing to the project management team and project control committee, and the project bond.

In parallel to the abovementioned approval activity with NMDC and NLCIL, the Company is progressing its preparations to meet these commitments before execution of the major capital works contracts.

To this end, the Company has structured a program that includes the incentivisation of early ELF loan repayments, avoiding the need to pursue a capital raising via the issuance of new securities.

A separate announcement outlining the details of the program will be made in the due course.

The Company requests that the current trading halt be lifted.

For further information, contact:

Glenn Fozard – Chairman           [email protected]

Environmental Clean Technologies Limited (ASX: ECT) (ECT or Company) provides the following update on the status of its India project.

Further to the Company’s announcement of 3 January 2019, a trading halt was granted on 9 January 2019 to allow the Company to seek an update from project partner, NMDC Limited, following their board meeting scheduled for 8 January 2019.

NMDC earlier advised the Company that ratification of the previously provided in-principle approval of the Research Collaboration Agreement (RCA) would be included on the agenda of this board meeting.

The approval of the RCA by the board of NMDC is the final partner approval required to proceed to financial close and formally commence the Company’s India project.

The board of ECT’s other project partner, NLC India Limited (NLCIL), previously approved the RCA commercial terms on 14 November 2018.

NMDC has now advised ECT that the original board meeting agenda was subsequently amended to a ‘single purpose’ agenda focused solely on the NMDC Share Buy Back Program. As such, all other agenda items, including the request to approve the RCA, were not tabled for decision.

ECT Chief Operating Officer, Jim Blackburn commented from Chennai, “Clearly this is an unexpected change in process.

“Importantly, however, ECT and project partner NLCIL have been in contact with NMDC Chairman & Managing Director (CMD) N. Baijendra Kumar over the last 48 hours and we are pleased to confirm that the project proposal will be taken forward quickly for a decision before the end of January.

“In discussions with our partners respective CMD’s, there has been explicit acknowledgement that timing is critical and moving from subsequent board approvals to signing should happen at the earliest opportunity.

“Whilst we have absolute clarity and management direction over the preparation and planned implementation of the project, the administrative board processes for large and complex PSUs (Public Sector Undertakings) such as NMDC are not within our control. It is understandably frustrating for all parties when changes in these processes are necessarily made; however, all partners remain absolutely committed to the project, and we expect that NMDC will respond accordingly over the coming days.

“We acknowledge our shareholders continued support and patience as we work through these final formalities ahead of project commencement in India. Importantly, our expanded India team have worked tirelessly over the past several months to ensure all parallel preparation activities are well advanced, so the project may ‘hit the ground running’ following financial close.

“This has included the execution of confidentiality agreements this week with a Chennai-based engineering firm for the tender package preparation works and planned site visits to steel making facilities in southern India with a focus on possible waste stream resources and continued development of key strategic partnerships for the commercialisation program.

“Further, we have extended our direct strategic relationships with the Indian government, further raising our profile with key influencers, and broadening the awareness of and support for our establishment in India and the rollout of the commercialisation program for the region.

“Finally, we have also drawn great confidence from the progress of our work on strategic projects in Australia. It’s is certainly shaping up to be an unparalleled year of growth ahead for the Company and our shareholders.”

ECT Chairman Glenn Fozard commented, “Notwithstanding the positive discussions held over the last few days with our Indian partners, the board of ECT shares our shareholders’ disappointment in having missed another deadline.

“It is often difficult for large companies to understand the impact that these delays have on smaller companies’ confidence and market sentiment and the ECT board has made it clear to our Indian partners that further unexpected delays will have serious implications for ECT’s ability to continue with the project.

“We acknowledge that the complexities of a managing a large PSU far outweigh the importance of one single project like ours, but as the custodians of ECT’s shareholder value, we must strive to optimise outcomes regardless of complexity.[

The Company looks forward to providing further updates on progress by NMDC to finalise approval and subsequent signing of the RCA and requests the current trading halt be lifted, effective immediately.

For further information, contact:

Glenn Fozard – Chairman           [email protected]

Environmental Clean Technologies Limited (ASX: ECT) (ECT or Company) is pleased to provide the following update on the Company’s India project.

Key points:

Status of NMDC Board Approval

Further to the Company’s recent update (19 November 2018), NMDC have confirmed they will seek approval for signing of the RCA at their next board meeting, to be held in the first half of December.

The Company previously announced the in-principle approval of the RCA by NMDC subject to approval by partner NLCIL, which is in-hand.

NMDC were expected to ratify that in-principle approval at their recent board meeting (13 November 2018). Due to unforeseen circumstances, the agenda item was deferred.

ECT COO Jim Blackburn commented, “We’ve discussed with NMDC the possibility of providing the anticipated approval via a circular resolution or via an additional board meeting during November. Unfortunately, the value and importance of the project precludes the use of a circular resolution and collective board commitments through the balance of November preclude another board meeting this month.

“Instead, NMDC have confirmed they will bring their December board meeting forward to the first half of the month rather than the latter part and have restated their commitment to seek approval of the RCA.

“All partners have agreed to continue driving project preparations in parallel to formalising NMDC’s ratification. This includes establishment of the Project Control Committee (PCC), the appointment and induction of key ECT project personnel, briefings to the Ministries of Coal and Steel and preparations for the signing ceremony.”

NLCIL and NMDC are also anticipated to confirm senior personnel will attend the Company’s Annual General Meeting on 30 November.

Lignite Drying and Application/Market Study

As the Company progresses toward financial close for its India project it is pleased to advise that a draft report will be submitted this week as the first stage to a broader study to identify and prioritise attractive markets for upgraded lignite in India.

The report will be released publicly as a "Lignite Drying – Process and Technology Comparison Whitepaper” a summary of which will be made available on the ECT website once complete.

NLCIL, being the custodian of India’s lignite resources, is at the forefront of efforts to develop alternative, higher value applications, including iron and steel making via our India project.

To date, the India project has focused on Matmor, given India’s need to lift steelmaking capacity to 300 million tonnes per annum by 2030, and the relatively high return provided by steel sales compared to solid fuel sales.

However, as Coldry is integral to the Matmor process, and with the project progressing to its final approvals, attention has again been given to the broader benefits that the technologies can deliver.

As identified by the following diagram, Coldry as both a standalone and integrated technology (with Matmor) is an ideal ‘gateway’ solution for higher value applications.

At present, use of lignite for power generation represents the lowest value pathway, given the overriding objectives for the electricity sector are affordability and reliability.

By directing lignite use toward higher-value conversion processes such as Coldry, NLCIL can target a higher return per tonne of lignite, while reducing CO2 intensity of both new and traditional industrial uses.

The study has commenced with a refreshed analysis of current and emerging low-rank coal drying technologies, including Coldry.

Noting that the analysis of low-rank coal drying technologies can be complex, the study has considered the use of process temperature and pressure as proxies for capital and operating cost, by which the ability to benchmark the various technologies becomes easier.

Higher temperature and pressure results in higher costs.

The below chart provides an overview of the relative ranks of various processes, with Coldry clearly the leading process.

ECT and NLCIL will review this initial study with a view to prioritising additional areas of research and development in parallel with, and supporting, the broader Pilot Plant project.

Importantly, this initiative is strongly aligned with the Government of India’s recently announced plans for coal self-sufficiency.

The terms of reference for the development of this policy have been released, calling for a “policy prescription on how India should meet its demand for coal in domestic power and non-power sectors to cut imports of the fossil fuel over the next 10 years.”

The policy paper will identify key scenarios for linking coal production and consumption requirements in the country and is expected to form the basis of a comprehensive national policy.

Chairman Glenn Fozard commented, “India's power generation industry is coming under increasing pressure to maintain economically viable supplies of thermal grade coal to continue operations of black coal power stations. Imported black coal is becoming prohibitively expensive, impacting India’s balance of payments and the availability of suitable quality domestic black coal for power generation is sorely lacking. NLCIL owns a resource which may be a suitable feedstock for power generation once dried and hence continues to position NLCIL at the forefront of industry development in this area.”

The Company looks forward to providing further updates as the study progresses.


For further information, contact:

Glenn Fozard – Chairman           [email protected]

Environmental Clean Technologies Limited (ASX: ECT) (ECT or Company) is pleased to advise that the board of NLC India Limited (NLCIL) has approved the Research Collaboration Agreement (RCA) for the Company’s India project.

Key points:

The Company recently entered Voluntary Suspension (13 November 2018), following an earlier Trading Halt (9 November 2018), pending the outcome of board meetings by its India project partners to consider approving the signing of the RCA.

NLCIL held its board meeting as scheduled Wednesday (14 November 2018), and have confirmed that their board has provided the anticipated approvals subject to the approval of project partner NMDC and engagement with government ministries

Status of NMDC Board Approval

NMDC held their board meeting on 13 November 2018, however, consideration of the RCA approval was deferred due to the unexpected absence of the Director sponsoring the project. ECT is currently in discussion with NMDC to confirm whether the proposal may proceed via a circular resolution or an additional board meeting this month. This process is not expected to result in material delays as NMDC have previously provided in-principle approval subject to NLCIL board approval, which is now in hand. Further updates on NMDC board approval will be provided in due course.

Engagement with Indian Government

Once NMDC has formalised their approval to sign the RCA, ECT, NLCIL and NMDC are expected to present a project briefing to key Indian government stakeholders including Ministry of Coal and Ministry of Steel officials. This briefing process is aimed at bringing all stakeholders up to date with the project and is a necessary process to facilitate preparation and coordination of the signing ceremony and subsequent execution of administrative requirements through to ‘financial close’.

ECT COO Jim Blackburn commented, “We’re delighted to have achieved the first of the necessary board approvals and look forward a positive outcome from NMDC shortly. We are equally pleased with the opportunity to engage with Indian government ministries together with our strategic partners NLCIL and NMDC.”

“It’s important to understand that the recently completed external legal review and amendments to the RCA conducted over the past several months were extremely thorough, reflecting the importance and status of what we understand will be the largest ever research collaboration project between India and Australia.

“Given the scope of India’s challenging ambition of simultaneously lifting steelmaking capacity by 165 million tonnes per year while reducing emissions intensity by 35% by 2030, technologies such as those developed within this project will necessarily play a major part in coming decades.

“We believe our technologies are uniquely positioned to help our partners deliver on this ambition through the utilisation of cheaper, abundant, alternative raw materials at lower emissions intensity than the traditional blast furnace route.

“And while our project will commence with a research phase, upon successful completion we will progress to commercial rollout, initially in India, then targeting global opportunities.

“This status has attracted the attention and interest from the highest levels of Indian government and we look forward to the opportunity for engaging with the Ministry of Coal and Ministry of Steel ahead in due course.”

The parties previously anticipated clearing board approvals and hold the signing ceremony before the end of November, however, based on feedback from NLCIL and NMDC the signing ceremony will now occur after the end of November, at a date to be confirmed. An extension to the project agreement (MOU) was previously executed (see announcement 15 August 2018) to allow time for the parties to complete their processes. A further extension is being arranged to ensure the project agreement remains on-foot in the lead up to the RCA signing ceremony.

Further updates on the timing of the above activities will be provided as details are confirmed.

Summary of Commercial Terms

The following summary of commercial terms outlines the key elements of the RCA:

Of interest to shareholders will be the quantification of responsibilities regarding project expenditure, specifically:

To date, the value of the project has been described in terms of its overall budget, estimated at ~AUD35M, excluding taxes. This budget has two components:

Through the Basic Engineering Design process, completed in September, these estimates have continued to be refined. In regard to operating expenditure, this accounts for the period following construction, during which the plant will enter a period of commissioning and experimental trials. The operational cost of these trials is budgeted at ~AUD5.4M.

As noted above, ECT will contribute 49% or ~AUD2.6M of this operational expenditure.

Further, ECT has agreed to the inclusion of a project bond instrument. The purpose of the bond will be to align ECT’s financial commitment to the project alongside the CAPEX funding provided by NCLIL and NMDC. ECT will be required to provide a bond in favour of the research collaboration which will only be redeemable in the event that ECT is unable to meet its obligations under the RCA prior to commissioning.

The changes have been made in light of the final review process and the identification of risk mitigation mechanisms should project overruns occur or should ECT ‘walk away’ from the project during construction. The Company is confident in the potential of its Coldry and Matmor technologies and in the capability of its team to deliver the desired outcomes and as such have welcomed these appropriate contingent cost sharing and cost overrun provisions.

The Company looks forward to maintaining the recent progress toward ‘financial close’ and will continue to provide updates on the way through.

The Company requests the current Voluntary Suspension be lifted, effective immediately.


For further information, contact:

Glenn Fozard – Chairman           [email protected]

Environmental Clean Technologies Limited (ASX: ECT) (ECT or Company) is pleased to provide the following update on the progress of its project in India and local activities.

Key points

Research Collaboration Agreement (RCA)

Further to the Company’s announcement of 16 October, the ECT executive have maintained their presence in India to oversee the conclusion of the final compliance and legal review of the Research Collaboration Agreement (RCA) (see announcement 1 Oct 2018) and support the planning and preparations for NLCIL and NMDC board meetings in November.

Updates to the RCA, reflective of the detailed commercial terms as agreed between the parties, are being completed ahead of submission to the respective boards.

NLCIL’s board meeting has now been confirmed for 15 November, where the formal approval of the RCA will be tabled.

NMDC plan to hold a board meeting in the balance of the month where the formal ratification of their prior in-principle approval for the project is expected.

Commenting from Chennai, ECT Chief Operating Officer, Jim Blackburn said “We have remained on the ground in India to ensure we can provide every support to our partners NLCIL and NMDC in the lead up to the respective board meetings”

“ECT Chairman Glenn Fozard will be in India until 7 November (the date by which all NLCIL board papers must be submitted) and will take this opportunity to meet with NLCIL and NMDC representatives to advance discussions on the broader strategy for commercialisation of ECT technologies in India, Australia and globally.”

Commercial terms of the RCA will be summarised and announced ahead of submission to NLCIL and NMDC boards and approvals from each board meeting will be advised to the relevant Indian ministries and the ASX market as they are received.

ECT Chairman Glenn Fozard commented, “My presence in India will focus on two objectives. Firstly, to provide support to NLCIL in the lead up to their board meeting. Second, to update our partners on the broader strategic planning and business development initiatives once the R&D collaboration project is live. This will include business development activities in Australia and other project locations around the world as well as advising our partners of key personnel changes aimed at delivering the successful execution of our Coldry-Matmor project in India. ECT will also publicly announce the personnel changes once they are finalised.”

For further information, contact:

Glenn Fozard – Chairman           [email protected]

We recently held a Q&A on the stock market forum, Hot Copper.

Below is a transcription of the questions and answers.

Questions have been edited for readability.

Question 1:

1.1 India Project:

This point was previously made by @onlymoney on this forum in May 2018 (ref: https://hotcopper.com.au/posts/33168295/single).

It was stated:

Another reason ECT may have stepped back to 49% ownership is due to the Foreign Direct Investment rules (FDI). This is the maximum amount of Foreign equity allowed in a coal/lignite PSU.

Can you please elaborate if the above influenced the decision to reduce our stake to 49% and if it didn’t, what was the main reason we reduced our stake in the project to 49%?

1.2 India Project:

From the update released to market September 11, 2017:

In his first act as the CMD of ECT India, Mr Moore has commenced the selection process for an additional resident Director, as well as staff to support the increased operational tempo. These appointments are expected to occur over the coming months.”.

Can you please provide an update on the appointment of an additional resident director of ECT India and the appointment of additional staff? It’s currently October 2018 so did you mean “12 months or more” when you stated “coming months? Please provide some clarity around your statement from September 2017.

1.3 Revenue Model:

It was stated that this would be provided to the market in July. It is now October, are you planning to release the revenue model in the near future? Without this information how do you believe prospective investors can put a value on the business and India project?


  1. Ownership structure: A number of reasons drove the 49:51 split. One of those was the FDI rules for a PSU. A significant influence in ECT agreeing to this change was the partners' agreement to fund the costs of the project to 150 Cr. Once we have completed the RCA we can elaborate on the details behind this decision.
  2. Resident Director: Santosh Agrawal has been appointed as the resident director in Dec 2017. Additional staff have been selected and we are awaiting finalisation of the RCA before we finalise employment contracts.
  3. Revenue model: the revenue model update was intended to be released just prior to the conclusion of the detailed agreement (RCA). This remains the intent. The delays of RCA signing have subsequently led to corresponding delays in the release of the revenue model.

Question 2:

MPA, MOU, TPA. Now we are a looking at an RCA?

Who is driving the changes to the agreement titles and why can’t ECT seem to lock down the name?


The changes are driven by the evolving and progressive nature of discussions with our partners in the context of this being a first-of-a-kind agreement, partnership and project for them. Feedback from various stakeholders and advisers also influence how various elements are referred to. Importantly, the substance and intent remain the same as originally communicated, regardless of a change in ‘label’.

We do note and recognise that this may seem confusing for shareholders and so we will do our best to connect the previously used labels with any new label.

Question 3:

Is the company in the position to claim R&D tax incentive given it's selling Coldry product and the Indian partners are financing the India project?

I believe the maximum rebate is $500k.

Do you claim for 3 different technologies; Coldry, Matmor, Hydromor. Is that correct?


  1. Yes, ECT continues to conduct eligible R&D activity. The R&D Tax Incentive guidelines provide for the sale of incidental output from R&D activity so long as the funds received are netted off against the eligible expenses (the feedstock rule).
  2. There is currently no maximum, however, a change to legislation is being proposed that caps the R&D cash refund to $4ma. At time of writing this, this proposed change hasn’t been approved.
  3. R&D activities related to Coldry, Matmor/Hydromor and COHgen are all eligible.

Question 4:

Assuming construction commences are there agreed timeframes for completion or can we expect this phase to be a drawn out for years as well?

Assuming the result of the R&D phase is compelling, will the commercial phase require a repeat timeframe similar to the present process to upgrade to the next output target or could we expect a less arduous path forward?


Following financial close, a project overview will be provided, including stages and targeted timelines.

Following successful R&D outcomes, planning for the commercial phase can be refined and timeframes outlined.

Our forthcoming update on the revenue model will provide broad guidance on targeted timelines.

Question 5:

Assuming that the demo stage is successful, will ECT have to contribute 49% of the cost of the commercial phase? Or will NLCIL & NMDC be funding it 50%/50%?


ECT is not required to fund any of the subsequent commercial phase and the JV is not the vehicle for housing commercial assets.

Question 7:

Can you please provide some more details on the Form DIR-12-11102018 signed 11/10/18?

Change in Directors?


This relates to a statutory filing of Glenn Fozard's ID proof for his Indian directorship.

Question 8:

Hi, will this (Research Collaboration Agreement) be signed in November or we should expect more delay?


Based on the information at hand, NLCIL will hold their board meeting in early November and have confirmed their intent to include the approval of the RCA.

Question 9:

I read that a few years ago a man came to an AGM you held, and he represented the Monash company. He came to give confidence that he would deposit 5 million dollars to ECT and he gave ECT a promise on paper. But he never gave that money to ECT.

If nothing is signed by the sunset date and nothing is signed before the AGM I assume the India delegates are going to come to the AGM to spread confidence that they will fulfil their agreement with ECT eventually.

What assurances are in place that if the India delegates do share confidence to shareholders that there will not be a repeat of the Monash failure?


We expect that the partners will attend the AGM once the RCA is approved and signed.

NLCIL and NMDC are publicly listed companies with publicly available information on their financial capacity. There is no comparison to any of the proposed partners of the past.

Question 10:

Given the $1.3 million contract previously announced, are you still entitled to an R&D rebate?


Yes. The eligibility criteria relate primarily to the activity related to the expenditure.

ECT also has a lot of accumulated losses which would need to be offset first before we lost the cash refund component of R&D tax incentive program.

Question 11:

11.1 New Boiler: You previously stated;

"Feasibility study started for demonstration biomass boiler at the High Volume Test Facility (HVTF) at Bacchus Marsh."

Will this boiler replace what's currently at Bacchus March? If so, what would its output be regarding how much volume the plant could sustain?

Can ECT get a grant for this new innovation to reduce our R&D spending cap?

How much money will this save per tonne of product?


We are looking at all grant options that may apply; however, the cost is part of our eligible R&D activity under the R&D tax incentive program. The saving to be gained from this boiler system will be defined by the feasibility study, yet to be completed.

11.2 Legal Review of RCA:

"Over the past 2 weeks, ECT Chairman, Glenn Fozard, together with CMD ECT India, Mr Ashley Moore, and Chief Operating Officer, Jim Blackburn have been in India to attend meetings with NLC India Limited (NLCIL), NMDC Limited (NMDC) and Indian Government representatives and to oversee the conclusion of the final compliance and legal review of the Research Collaboration Agreement"

So, has it concluded or not?

Are there any more reviews needed to be completed now that the RCA review has been completed?

Will we know if the RCA updates have been agreed upon prior to the Board meeting?


  1. Submitted to NLCIL.
  2. NLCIL have not added any further requirements ahead of the Board meeting in early November. If there are any material changes to the RCA, they will be communicated.

11.3 Project promotion: Regarding the promotion activities, has ECT been approached by funds or Instos seeking investment?

Answer: Any discussions of this nature would likely be confidential until their conclusion after which it would be announced to the market.

11.4 ELF: Is it possible for ECT Finance to set up an Escrow facility for those current shareholders willing to offload 5million plus shares for these new investors at an agreed price - thus reducing the unnecessary volume spikes?

Answer: The ASX market and not ECTF would be the mechanism to allow your hypothetical event to occur.

11.5 Victorian contract: Reading the 9th Aug. supply contact in Victoria it states:

"5-year supply contract for Coldry solid fuel to support delivery of process steam via an existing solid fuel boiler system",  "Lead-in analysis indicates we may be able to deliver potential savings of 15% per annum for our client"

I read the 9th Aug announcement as a straight Coldry supply to solid fuel boiler. Was this announcement always about mixing Coldry with biomass? If not, will this increase the savings for the client?

Answer: The system is intended to run on 100% Coldry but can also continue to take solid fuel biomass.

11.6 Activated carbon market: Also can we hear more about this activated carbon market that was mentioned a while ago?

Answer: Your question is not specific enough and I'm afraid we don’t have enough time to outline a response during this Q&A session.

Question 12:

On a typical design and construct project, the budget for drawings is between 5% to 20% ($1.8 million to $7.2 million) of the total project. I would expect that the costs for a first of kind project the design would be closer to the upper end of the spectrum.

My question is; has any progress been made on the issued for construction drawings under the disciplines: Structural, Mechanical, Piping, Electrical and Instrumentation. If there are no drawings, meaningful work cannot commence until their acceptance by the Joint Venture (JV).

In earlier announcements mention was made of an electrical sub-station, is the sub-station within the scope of the ECT Project? I'd imagine if the sub-station is not ready the ECT plants won't be operating so, therefore, ECT would take a keen interest in the substations construction.

Has the construction company nominated persons who are acceptable to the JV for the position of Project Manager?


  1. The detailed drawings are part of the project and therefore require the parties to reach financial close prior to commencement.
  2. The substation is part of the project.
  3. Following financial close, a detailed overview of the project will be provided, including stages and targeted timelines.

Question 13:

Is the aim of the new plant still to prove Coldry commercial? Are you able to give us the rough output for the new plant if it is just making coal pellets without iron?

Will the revenue model and timeline be released before the AGM?

Has there been any new interest from our recent presentations?


  1. Our Coldry R&D plan, as approved under the advance finding, allows for the small-scale demonstration (~60ktpa) in India, followed by a large-scale demonstration (~170ktpa) in Australia. This provides maximum flexibility to the Company in assessing the appropriate commercialisation pathway.
  2. The revenue model will be released before the AGM.
  3. Several parties sought further information following our recent presentation in Dubai.

Environmental Clean Technologies Limited (ASX: ECT) (ECT or Company) is pleased to provide the following update on the progress of its project in India and local activities.

Key points


Local Activities

Research Collaboration Agreement (RCA)

Over the past 2 weeks, ECT Chairman, Glenn Fozard, together with CMD ECT India, Mr Ashley Moore, and Chief Operating Officer, Jim Blackburn have been in India to attend meetings with NLC India Limited (NLCIL), NMDC Limited (NMDC) and Indian Government representatives and to oversee the conclusion of the final compliance and legal review of the Research Collaboration Agreement (RCA) as outlined in the Company’s 1 October 2018 announcement.

The CMD’s of both NLCIL and NMDC continue to express clear, strong commitment to the project, acknowledging that the prospect of the project being the largest ever research and development (R&D) collaboration between Australia and India has the eyes of Government keenly directed towards them, driving the complexity of internal requirements and need to undertake rigorous review.

Importantly, ECT has supported this recent review process through the additional support and analysis work provided by ECT’s advisers Corrs Chambers Westgarth (Legal advisers, Australia), Grant Thornton (Tax and Accounting, Mumbai) and Induslaw (Legal and Compliance, Mumbai).

ECT understands that the RCA review report from external consultant Lakshmikumaran & Sridharan (L&S) has been completed, and the three companies (NLCIL, NMDC and ECT) will be meeting in Chennai today, October 16 to finalise discussions and agree on an updated RCA ahead of Board approvals.

Commenting from Neyveli, ECT Chief Operating Officer, Jim Blackburn said “As our shareholders are very much aware, this further round of review for finalisation of the RCA has been an important and detailed process, necessary to clear the way for seeking Board approvals from each of the partners scheduled for early in November. While we are aware that NLCIL conducted an earlier Board meeting last Tuesday (9 October 2018) in Delhi to attend to internal compliance matters, we have been told NLCIL will hold an additional Board meeting in the first week of November, seeking approval to proceed. While this is later than the target date previously set by both NLCIL and NMDC (30th October 2018), the parties have agreed that no further extension is required and that the MOU remains on-foot and effective.

“The Board and Executive of ECT are keenly aware that as we approach these final stages of the contracting process, there is increased attention given by our shareholders and the broader market to each detailed step in reaching financial close for the India project. This is to be expected yet does not detract from the need for management to focus on the project implementation as a whole, as it is this approach which will ultimately drive growth in shareholder value. Each of the parallel processes outlined previously including contracting and governance, financing, engineering, resource planning and the like each play a part in the successful delivery of the Pilot plant project and lay the foundation for our progress into commercialisation.”

ECT COO, Jim Blackburn remains in India this week, and together with ECT India CMD Ashley Moore and Chairman Glenn Fozard, will ensure on-the-ground representation by ECT through to signing to provide any further support necessary to facilitate the consideration and approval of the RCA by the Boards of NLCIL and NMDC.

Prior to, and immediately following the expected partner Board approvals, key processes and milestones for the project will include:

Senior delegates from NLCIL have expressed a desire to attend the ECT AGM on November 30, and both NLCIL and NMDC will be invited to attend to jointly present the project to ECT shareholders.

Project Promotion

As previously reported (1 October 2018), in the lead up to financial close of the India project, ECT has been active in a number of global forums in response to growing industry and media interest in the project and its Coldry and Matmor technologies.

These forums provide an important opportunity to develop key strategic links between the R&D stage of the India project and a future pathway for commercial projects.

In addition to media briefings, the following events have recently been completed.

Following the Chairman’s meeting with the Additional Secretary for Ministry of Steel, Rasika Chaube, she presented to the conference in her closing remarks that, “Indian companies are encouraged to JV with foreign companies, particularly those foreign companies that are able to support technology transfer to India in its pursuit of the country’s improving competitive position as the nation seeks to deliver an additional 200 million tonnes of steel output through to 2030.”

Chairman Glenn Fozard commented, “not only does our collaborative project with NLCIL and NMDC meet 8 out of 10 objectives of the Ministry of Steel’s Steel Development Fund’s strategic R&D targets, it’s also structured under preferred arrangements, as expressed by Ms Chaube, of the Government of India’s policy for technology transfer.”

This outcome is a testament to the collaborative approach ECT has taken in listening to its partners’ needs and then converting that into strong commercial structures backed by comprehensive legal and tax planning.

Chairman Glenn Fozard commented further in relation to the India project, “The development of this project has been a long and challenging process, and we acknowledge the patience and, often at times, frustration our shareholders have experienced along this journey. But this is not without reason and reflects the nature of our project as being the largest ever R&D collaboration between Indian and Australian companies. Make no mistake, this is not a throwaway comment, and all shareholders should be proud of the company’s ability to persist and progress such a watershed project, where the recognition of this achievement, and what it means for our company, should only improve. The enormity of effort and work needed to complete a deal like this is difficult to appreciate and accounts for why no other company has achieved the size of R&D collaboration we are aiming to close on soon. We are acutely aware that there is no second prize in the pursuit of such lofty goals and much of the effort will be wasted if we were not able to finalise the project, but the Company and its Board and executive are confident that this will not be the case.”

The Company looks forward to providing further updates as the above activities progress.

Local Activities

Steam Package Contracts - Update

Further to the Company’s announcement of 9 August 2018 highlighting the signing of a $1.3 million, 5-year deal for the provision of a turnkey solution for steam services to a customer in Victoria, Australia, the Company is pleased to advise the first stage of the contract has been completed.

The contract entails:

A key requirement identified during the scoping phase was the need to maximise the operational efficiency of the customer’s boiler system, which was originally designed to run on low-grade biomass such as wood chips and briquetted rice husks, rather than higher-energy solid fuel such as Coldry.

As such, the first phase of the contract entailed the design, fabrication, installation and commissioning of an automated solid fuel feed system designed to optimise Coldry consumption.

Scoping estimates indicate the system will use around half as much Coldry solid fuel compared to biomass. This efficiency is due to Coldry’s lower moisture content, and significantly higher energy value and combustion temperature.

The feed system (shown below) consists of a variable feed-rate hopper and incline screw conveyor, controlled via a computer-automated program.

Commissioning of the system will commence this week, with the provision of ‘process steam’ anticipated to commence under contract in late October.

Boiler Package Contracts - Update

ECT COO Mr Jim Blackburn commented “The Victorian energy market has changed dramatically in the past three years, with wholesale electricity prices trebling since 2015[1] and gas prices doubling[2] over the same period. This has driven many businesses, reliant on industrial scale process heat, to seek alternatives.

“Unfortunately, this has put pressure on local biomass supplies, resulting in shortages and price increases, in addition to existing issues regarding the security of consistent supply. Consumers are turning to expensive stop-gap measures such as diesel. Economically, this is unsustainable, driving business to seek alternative long-term solutions.

“This problem has created an opportunity to sell product from our Coldry R&D facility. Further, following extensive consultation with consumers, it’s clear they want someone to provide a solution that delivers steam, and saves money, allowing them to focus on their core business. This has created an opportunity for ECT, together with leading boiler operator Mecrus, to deliver a turnkey solution tailored to the end user’s equipment and needs.”

Building Strong Relationships with Boiler Manufacturers and Service Providers

ECT is pleased to advise that in support of its strategic boiler and steam package offering to the Victorian and Tasmanian markets, the Company has teamed up with Hi-Tech QLD and John Thompson boilers in addition to Mecrus to provide a complete turnkey solution for biomass boiler systems, specifically designed to accept multi-feedstock fuel, including wood waste, crop stubble and municipal green waste, underpinned by Coldry as the baseload fuel.

This has led to ECT’s first joint tender submission, along with Hi-Tech and John Thompson for the provision a 10MW(th) boiler system to a customer in Tasmania.

ECT is also working closely with these partners to undertake feasibility and pricing for a biomass boiler system on-site at its Bacchus Marsh test facility to replace the current waste oil boiler system.

The market for industrial steam and the boilers required to produce this steam are at a significant cross-road.  Most users have turned away from 100% coal-based boiler systems, and gas-fired systems have become prohibitively expensive. This has seen the next wave of migration towards biomass fuel solutions.

There are still great challenges ahead for users of industrial steam when considering a pure biomass boiler system, including lower efficiency, single fuel dependency, transport and storage issues and shorter equipment lifetime.

ECT aims to solve some of these problems by offering a high-quality boiler system that can utilise variable biomass inputs while also using Coldry.

The intent behind this approach is to be able to deliver a steam solution that allows users the flexibility to choose the biomass that is most suitable (on the basis of cost, quality and supply), while being underpinned by a fuel stock (Coldry) that serves as a consistent, cost-effective base-load.

We expect that at most times, these boiler systems would use <50% Coldry to retain the biomass status, but where quality biomass becomes unavailable, Coldry would ensure continuity of steam production and operations.

Chairman Glenn Fozard commented that “there is an absence of a complete turnkey solution in the Victorian and Tasmanian markets that offers ‘steam over the fence’ to industrial users, while also delivering new equipment and often cheaper monthly operational costs. This requires assembling a high-quality team of end-to-end service providers, covering boiler plant and equipment, installation, operations and maintenance, fuel supply and management and financing. ECT now has that capability.

“The steam and boiler package approach, coupled with equipment financing solutions via our subsidiary, ECT Finance Limited, looks to deliver reliability and affordability, striking a chord in the local market.

“Following the successful rollout of our first contract, and the demonstration of our capability to deliver these packages we will continue to market our turnkey solution across Victoria and Tasmania.”

The Company will provide further updates on its local market activity as projects progress.


For further information, contact:

Glenn Fozard – Chairman           [email protected]


[1] Source: Australian Energy Market Operator (AEMO) - https://www.aemo.com.au/Electricity/National-Electricity-Market-NEM/Data-dashboard#average-price-table

[2] Source: Australian Energy Market Regulator (AER) - https://www.aer.gov.au/wholesale-markets/wholesale-statistics/victorian-gas-market-average-daily-weighted-prices-by-quarter


Environmental Clean Technologies Limited (ASX: ECT) (ECT or Company) is pleased to provide the following update on the progress of its project in India.

Key points

Research Collaboration Agreement

ECT Chairman, Glenn Fozard returned to Melbourne on Thursday 20th of September after meeting NLC Director NNM Rao and NMDC Director NK Nanda in Hyderabad to confirm progress towards signing the RCA, commenting “I’m pleased to report there is a clear pathway towards completing all items ahead of NLC’s October Board meeting, which is expected to be held sometime after the 15th of this month.

“My recent visit focused on clearly defining remaining requirements, mapped against the time available ahead of the deadline for submitting NLC board papers.”

Consistent with NLC’s review requirements, advisers Lakshmikumaran & Sridharan (L&S) were engaged by NLC on Saturday 15 September to provide the final compliance and legal review of the document suite which comprises the RCA. NLC have confirmed that the review will be completed within 21 days of initiation to allow for approval at the October Board meeting.

ECT COO, Jim Blackburn will return to India on the 3rd of October to manage the finalisation of the review and completion of the RCA prior to NLC Board submission on the 10th of October.

“ECT will be in New Delhi on the 8th-11th of October as guest presenter at NMDC’s International Conference and anticipate that the signing ceremony may be held in the balance of the month.

“Both partners remain committed, as evidenced by NLC’s recent Corporate Presentation, lodged with the NSE[i] and BSE[ii], highlighting our project as the lead R&D initiative.”


Above: extract from NLC's Corporate Presentation dated August 2018


Further to the Company’s last announcement, parallel activities in support of project commencement continue, including:

Engineering – EPC Tender Preparation

Following financial close the detailed engineering, procurement and construction (EPC) activity will commence.

Per Indian Government requirements for Public Sector Undertakings (PSU’s) the EPC phase is required to go to tender.

The tender process requires documentation to be prepared for issue to potential vendors.

ECT, together with engineering design partner MN Dastur and local engineering firm Geofiny, have commenced the review of all engineering elements and current cost estimations developed during the basic design process with the aim of aligning to the detailed levels required to support the tender program for the full EPC activity.

Further, development of the contracting strategy, aimed at balancing price with quality and intellectual property protection requirements is also underway, including pre-screening of potential vendors and execution of appropriate confidentiality agreements before the release of tender packages.

This preparatory activity will ensure that the tender documentation can be promptly initiated by the Project Control Committee following the signing of the RCA.

Project Management

ECT has completed the recruitment process for two key roles in the areas of Project Engineering and Project Management.

Candidates have accepted terms for the positions of Chief General Manager – Project Engineering and Chief General Manager – Project Management. Role titles and responsibilities have specifically been designed to align with Project structure in India and will be full-time positions based in Chennai and Neyveli.

After an extensive recruitment process, and interviews with 12 shortlisted candidates, ECT has been fortunate to secure two candidates with broad Indian and International experience, and specific experience with core areas of the relevant mineral’s technology and project management.

Working closely with current ECT project personnel, these roles will be primarily responsible for engineering, project management and execution activities associated with completion of the R&D phase of the project. Importantly the Company intends for these roles to move forward into long-term strategic roles supporting the broader rollout of the technology commercialisation phase, following the initial R&D project.

Project Promotion

In the lead up to financial close the Company anticipates growing industry and media interest in the project and its Coldry and Matmor technologies.

In addition to media briefings, the following events are scheduled:

The Company looks forward to providing further updates as the above activities progress.

For further information, contact:

Glenn Fozard – Chairman           [email protected]

[i] National Stock Exchange of India – www.nseindia.com

[ii] BSE (formerly Bombay Stock Exchange) – www.bseindia.com

Event: The Global Steel Innovations Forum

Location: Dubai, UAE

Date: 25-27 September 2018


ECT India Chairman & Managing Director Mr Ashley Moore will be presenting in conjunction with Ms Aditi Tarafdar, Technical Director at the India-based engineering firm, MN Dastur.

ECT has engaged MN Dastur to lead and deliver the basic engineering and design package for the integrated Coldry-Matmor R&D project with partners NLC India Limited and NMDC limited.

Mr Moore and Ms Tarafdar will introduce steel industry delegates to the worlds first lignite-based primary iron making process, highlighting its competitive advantages, the pathway to commercialisation and its potential in India and abroad.

The value proposition for Matmor is characterised by two distinct advantages:

  1. Alternative raw material opportunity
  2. Lower plant cost

The ‘alternative raw material’ opportunity

There exists a vast, ‘above ground ore body’ in the form of iron ore mine fines and slimes, and industrial wastes such as mill-scale and nickel refinery tailings.

Current processes can’t utilise fines and wastes without expensive pre-processing. Matmor liberates this resource in an efficient, cost-effective manner.

Matmor enables a lower cost primary iron production pathway by leveraging two unique features:

1) Decoupling iron making from coking coal
By utilising the rich organic chemistry within low-rank coal, the Matmor process utilises a different chemical pathway to deliver a high-quality iron product without the need for high-quality coking coal, resulting in decreased raw material cost and diversified supply options for customers.

2) Exploiting the ‘above-ground ore body’
By harnessing the vast ‘above ground ore body’ that exists as mine tailings, fines and slimes and from industrial wastes such as mill-scale and nickel refinery tailings, Matmor is able to leverage sunk mining and processing costs by providing a waste remediation solution that turns a contingent liability into a revenue stream.

Tailings storage locks up significant swathes of valuable land. Matmor minimises waste, releasing land for productive use and alleviating the environmental burden imposed by waste storage.

It is estimated that India has stockpiled ~100 million tonnes of such mine tailings, with current mining resulting in ~30% of mineral extraction adding to the stockpile annually.

Lower Plant Cost

Abstract: The Coldry technology is a patented brown coal densification and pelletisation process that changes the naturally porous form of brown coal to produce a dry, dense, energy-rich pellet. Coldry technology will be utilized in the integrated demonstration plant as an efficient pelletisation process to supply composite Iron ore and lignite pellet feed for the Matmor process. Matmor is a technology for the production of High-Quality DRI. The process operates at relatively low temperatures and is highly energy efficient. Utilizing novel reduction chemistry, the Matmor process has a favourable carbon intensity generating significantly lower CO2 emissions and a substantially lower water consumption while still producing high-quality DRI compared with conventional Iron making technologies. Given the utilization of low-rank coal and iron ore fines and reduction of CO2 emissions, feasibility studies indicate promising project economics with both CAPEX and OPEX advantages.


Last weekend we spent some time answering questions on the stock market forum 'Hot Copper'.

We ran out of time, so took some questions offline, with a promise to follow up.

We're pleased to present that follow up Q&A as follows:

Q1. You mentioned in a past communication that the India project is designed around a "fail fast, fail cheap" methodology. You also alluded to various technical hurdles that you hope to overcome with regard to the scale-up of Matmor, are you able to disclose some of the key risks the company has identified with respect to the up-scale of Matmor from pilot scale to commercial?

To be clear, this approach is not limited to the India project. This approach guides the research, development and commercialisation process from beginning to end.

All commercialisation programs should be designed to fail as quickly and cheaply as possible. When this approach is ignored it can result in failures such as the Port Hedland hot briquetted iron (HBI) plant, which while successful at small scale, jumped by too large a scale factor too quickly, failing at a reported cost of $2.4Bn.

The essence of R&D is the exploration of the unknown via the implementation of the scientific method, risk mitigation strategies and innovation.

In fact, to be eligible for the AusIndustry R&D Tax Incentive, the outcome of the activity cannot be known.

Unknown, unknowns are therefore the greatest risk to the commercialisation of new processes.

The commercialisation of an industrial process to large scale may also include scalability risk.

This is particularly the case for non-linear or non-Newtonian processes such as Coldry and Matmor.

By employing the scientific method and adopting incremental, stepwise scale-up factors, the risk is appropriately mitigated.

At a high level, there are two distinct streams of research in relation to Matmor:

These two research streams are interactive and multivariate and cannot simply be extrapolated based on current industry knowledge. Errors in the understanding of the chemistry will propagate as errors in the design and function of the apparatus, and vice versa, resulting in flawed or failed outcomes if extrapolated in a linear manner.

The India Project is designed to validate or refine key variables through the scale-up process, including:

Q2. In light of question 1, how soon will ECT become aware that Matmor is not able to scale (fail) and why? Will this be months, years, decades of operation of the India pilot plant?

Answering this very question is the primary objective of the India project and the commercialisation pathway in general.

Data is required to assess process performance against engineering, design and production objectives at each scale.

De-risking is anticipated to occur progressively along the R&D Phase of the India project timeline (currently up to 3 years). Any issues identified will be targeted for solutions during that period. The R&D phase may need to be varied such that a full and final assessment of Matmor’s performance can be achieved before the commencement of the commercial phase.

The project plan currently allows 9-12 months construction, 6 months commissioning and where needed, up to 18 months of experimental activity to generate sufficient data to consider the feasibility of commercial roll-out.

In the leadup to running the plant as a whole (including the Coldry component), individual plant components will undergo dry and then wet commissioning, identifying potential performance or design issues in those areas, on the way through, providing an opportunity to asses and respond.

The Company fully expects there to be refinements and adjustments to the plant but cannot predict what they may be or how long they may take to implement until there is actual data to inform such assessments.

A project timeline, including engineering, procurement, construction, commissioning and test program will be released following financial close.

Q3. To counter my Q2, how soon will ECT become aware that Matmor and Coldry are performing as expected and it's all "green" lights for commercial scale-up? Will this be months, years, decades of operation of the India pilot plant?

As outlined in Q2.

Q4. One can see the effort management is making to answer shareholders concerns and questions of late. Thank you for this effort and please understand that as a shareholder my primary concern is that we extract full and future value from the share price. It is evident that you as management are aware the market is not seeing the full potential future value of the company. Why do you think this is? (Here is your chance to take ownership of the current share price).

In delivering long-term shareholder value, the Company has been very clear in its objectives; the commercialisation of Coldry and Matmor, providing guidance on progress on the way through.

ECT is a pre-revenue technology commercialisation company. As such it may be worth taking a moment to draw your attention to the fundamentals of commercialisation as we see them and how we believe methodical execution, risk mitigation and frugal innovation can combine to bring our technologies to market, resulting in a commensurate valuation of the Company.

Coldry is poised to advance to demonstration scale. Matmor is poised to progress to pilot scale. As an integrated technology, this is the critical next stage ahead of the subsequent proposed commercial-scale demonstration.

Demonstration at appropriate scale is the key techno-economic validation stage in the commercialisation pathway prior to commercial deployment.

Commercial deployment is the key to generating revenue from the Coldry and Matmor technologies.

Revenue (both present and future) is the key to establishing a basis for fundamental valuation of the business and delivering on long-term shareholder value.

In this way, the implementation of the India project is analogous to the journey followed by a ‘typical’ junior explorer. The potential risk in seeking out new mineral deposits is typically high, as is the potential reward. This attracts Junior resource companies to the process of testing, evaluation and securing of a potential resource. The risk of discovering and proving this resource is borne by shareholders who have a commensurate risk-reward appetite. Following validation of the resource the junior explorer typically either on-sells the project to an established player or enters a JV with a partner who has the capital to develop the project, usually at a premium for existing shareholders.

ECT will continue to advance its commercialisation program and communicate the progress and results. Not all commercialisation will follow the path laid down in India. Whilst there is significant expected value in the technology assets developed to date, prior to commercialisation and the actualisation of potential revenue, the risk of share price volatility will remain, compared to that of a company with a mature market and revenue stream.

Shareholders will have likely researched the general market potential, understanding that India alone is planning on increasing its steelmaking capacity from 100 million to 300 million tonnes per annum by 2030.

India has little in the way of domestic coking coal and its iron ore is relatively soft, producing considerable fines.

Following successful R&D outcomes, our India project will deliver a solution that decouples reliance on coking coal and liberates ‘stranded’ iron ore fines, enabling the use of lower cost domestic resources. For each tonne capacity developed through the implementation of the integrated Coldry-Matmor technology, the Company expects to earn direct revenues from royalties, together with the prospects of diversified income streams related to project management and other related activities.

Q5. Why are we not seeing senior management or board members buying stock on market at current levels? This would help instil some confidence that management see the company as a "good bet". Why has there been no activity on this front?

Past and present Key Management Personnel (KMP) and Directors hold over 620 million shares representing almost 13% of the Company.

The Company’s Security Trading Policy and Corporate Governance Statement are available on its Website - http://ectltd.com.au/about-us/corporate-governance/.

KMP are only able to trade in the Company’s securities during two 8-week windows following the release of the interim and annual reports.

During those windows, permission is only granted if the KMP is not in possession of inside information.

Further, the Corporate Governance Council, under Principle 2.4 recommend that the majority of Directors be independent. At present, the majority of the Board is independent. Independent Directors do not hold shares.

Q6. Please provide comment to the other posters who have raised the Arrowhead research report from a few years ago as being outdated and the chance of updated coverage. Please see their individual posts for further clarification and I look forward to your response.

ABID provide their view via proprietary valuation methodology based on the publicly available information. The Company will provide an update to ABID following financial close.

Q7. Does management think there is a local story worth marketing with respect to sales of local Coldry? In a few days, more details will be revealed with respect to local sales and revenue so this is your chance to let us as shareholders know if you think local sales represents a good story which can be used to market Coldry to other potential customers (local). At this stage, we as shareholders are being kept in the dark with respect to local revenues and customers, but don't you think a public story regarding the "actual" benefits customers are receiving right now is a worthy story to be told?

The Company is preparing an update on local market business development activity.

The local market story is compelling, however, there is a range of factors that must be taken into consideration and balanced with regard to timing and approach.

As previously mentioned, the Company has taken an approach that seeks to balance the primary purpose of the Coldry pilot plant, being R&D, and the pursuit of local market sales.

Balancing the transition from R&D activity, with a variable production profile, to commercially-focused production with a maximised production profile, is essential to ensuring pilot plant availability in support of the India project in the short term while ramping up to maximum commercial capacity in the medium term, ahead of the potential transition to the proposed Latrobe Valley project, should we decide to proceed.

In addition, the proposed Latrobe Valley project feasibility study seeks to build upon local market interest.

The company is in the process of finalising an update to the market on local Coldry sales and more information will be disclosed in this release.

Revenue will be reported twice a year via the interim and annual reports.

Q8. Last one as I want to leave the lectern for others. Building the "India" relationship with NMDC, NLC over the past few years has obviously presented challenges, I applaud your patience because if we get this deal over the line then it is testament to your patience over the years to get it to this point. What have/were some of the biggest challenges the company faced with doing business in an accustomed "Indian" way? By that I mean, we do business in Australia a different way to those in India, are you able to provide a few examples or make comment on how hard it has actually been and why? I am interested to know just how differently things are done.

We understand that shareholders would like to know a bit more about the types of challenges in doing business in India.

India is an emerging nation and the world’s largest democracy.

As previously mentioned the approach to doing business in India involves ‘patience with a polite persistence’. As such it would hardly be polite to itemise the challenges faced, as harping on such challenges or hurdles may be viewed by our partners as unnecessary criticism, which is not conducive or compatible with the basis for our long-term relationship.

We refer shareholders to the many case studies available on the Internet that detail the challenges experienced by foreign countries when engaging in the Indian market.

We’ve mentioned previously that the Australian high commission has praised ECT for its approach to doing business in India. This praise is echoed by personnel within Austrade. We plan to develop a case study with Austrade for future publication.

Any international jurisdiction will have its challenges simply by the mere fact that business culture and operating norms may be vastly different. ECT will provide further communications to our shareholders about the opportunities for global expansion of the Coldry and Matmor technologies, and the broad strategy through which we see these opportunities coming to fruition. It is certainly clear that our experience in India has prepared the business very well for this next phase.