On January 3, 2019, Environmental Clean Technologies Limited (ASX: ECT) has come up with the following new update on its project based out in India. The key points are:
- India Project partner NMDC Limited formally announced the next Board meeting for 8 January 2019.
- Approval to sign ‘Research Collaboration Agreement’ agenda item for the Board meeting.
- Amitabh Ray has been appointed to the role of Chief General Manager, Project Management for ECT.
Environmental Clean Technologies provides leading-edge coal and iron-making technologies. These technologies can deliver both financial and environmental benefits. The company was incorporated in 1985 and got listed on ASX in 1986.
On 30 May 2018, the company signed a historical project agreement with two Indian Government Public Sector Undertakings, NLC India Limited and NMDC Limited for the largest ever A$35 million research and development project between Australia and India.
The project agreement will set the framework for the collaborative development of ECT’s unique resource upgrading technologies: Coldry (Lignite drying) and Matmor (iron making), starting with the preparation of the detailed sub-agreements, which are established under the RCA, the terms of which were outlined on 19 November 2018.
The board of NLC India Limited approved the signing of the RCA on 19 November 2018, subject to approval by project partner NMDC and consultation with the Ministry of Coal. On 23 November 2018, NMDC initially advised they would seek ratification of the previously provided in principle approval to sign the RCA during its next board meeting, the targeted for the first half of December.
On 18 December 2018, the company provided a further update, noting NMDC’s board meeting had been delayed and was expected to occur in early January. NMDC has now formally announced that its board meeting would be held on 8 January 2019.
As stated by ECT’s Chairman Glenn Fozard, that this timing sits beyond their previous guidance that they have expected the meeting in the first half of December. Nevertheless, the company is pleased that NMDC has confirmed their board meeting. Following the anticipated approval to sign, they will finalize the preparation for the signing ceremony which is going to be held in India, at the earliest convenient time for the parties.
Significantly, forward preparations for the project implementation phase are continuing, with some of the objectives being the advancement of project preparations includes:
- Meetings with NLC India Limited and NMDC for discussing the establishment of, and schedules for, the Project Control Committee (starting from January 2019).
- Meetings with NLC India Limited civil engineering department to prepare for project execution, which also includes discussion and reviewing the capital budget and site geotechnical requirements.
- Meetings with external corporate and technical advisors to advance proposals for project support roles.
- Continuing the induction of ECT Chief General Manager Project management, Amitabh Ray, with introductions to the NLC India Limited and NMDC project teams.
Stock performance: On January 3, 2019, Environmental Clean Technologies ended the session on the flat note as the stock price has settled at A$0.010 per share. The market capitalization of the company stood at circa $48.01 Million.
In the time span of the previous six and three months, the stock delivered the returns of -23.08% and -16.67%, respectively.
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