Clean Invest Africa Plc - CASA Investment Update PR Newswire

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