Clean Invest Africa
CASA Investment Update
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 (
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.
"We came away from the CASA update with a new sense of excitement as to the potential scale of CASA in
We are confident we can turn these types of opportunities into commercial contracts and expand further in both
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
Telephone: 020 3130 0674
Noel Lyons - Executive Director
Telephone: 020 7486 6558
Corporate Adviser
Peterhouse Capital Limited
Guy Miller
Telephone: 020 7220 9795
