ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — AGM Information 2014

Nov 27, 2014

AGM 2014�

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Managing Directors Presentation�

Disclaimer�

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Environmental
Clean
Technologies
Limited
has
taken
all
reasonable
care
in
compiling and
producing
the
informa:on
contained
in
this
presenta:on.
The
Company
will
not be
responsible
for
any
loss
or
damage
arising
from
the
use
of
the
informa:on contained
in
this
presenta:on.
The
informa:on
provided
should
not
be
used
as
a subs:tute
for
seeking
independent
professional
advice
in
making
an
investment decision
involving
Environmental
Clean
Technologies
Limited.
Environmental
Clean Technologies
Limited
makes
no
representa:on
or
warranty,
express
or
implied,
as
to the
accuracy,
reliability,
or
completeness
of
the
informa:on
provided.
Environmental Clean
Technologies
Limited
and
its
respec:ve
directors,
employees,
agents
and consultants
shall
have
no
liability
(including
liability
to
any
person
by
reason
of negligence
or
negligent
misstatement)
for
any
statements,
opinions,
informa:on,
or maBers,
express
or
implied
arising
out
of,
contained
in
or
derived
from,
or
any omissions
from
this
presenta:on.

Overview�

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� News
today
–
Matmor
Purchase
Nego:a:ons

� Year
in
Review:

– Key
Ac:vi:es

• Opera:onal
  achievements

• Status
  of
  development

  • Coldry

  • Matmor

• Next
  Steps:

• Coldry

• Matmor

Today’s news – Matmor Purchase Negotiations�

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� Formalise
ownership
of
IP
and
P&E
under
ECT – De-­‐risk
further
investment
in
development – Increase
interest
from
development
partners

– Increase
value
within
Coldry;
Increase
value
within
Matmor � Key
commercial
principles
agreed;
arrangements
now subject
to
finalising
proposed
contracts – Details
to
be
included
in
subsequent
announcement

Key Activities�

� Comple:on
of
the demonstra:on
plant
design � Iden:fica:on
and
appointment of
a
world-­‐class
engineer
/ fabricator
/
constructor
in Thermax

• Significant
  capex
  reduc:on
  of more
  than
  60%
  vs
  Aus

• Development
  toward
  a demonstra:on
  project
  in
  India with
  Neyveli
  Lignite
  Corpora:on (NLC)

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Continuous
Improvement
Methodical
&
Accountable
Execution
Frugal Innovation
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Operational Achievements�

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� Total
expenses
reduced
by
38%

� Core
cash
expenses
decreased
19%

� Employee
costs
were
$332k
lower
in
2014
resul:ng from
organisa:onal
efficiencies � Sales
and
marke:ng
expense
was
$205k
lower � Engineering
expense
was
$2.412m
lower � Research
and
development
rebate
was
$341k
greater

Status of Development – Coldry in India�

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cost estimate

• Status: Complete

• Prepared with support from our Indian engineering partner Thermax, this activity informed a significant element within the FS Report and was key to establishing commercial feasibility.

Finalising funding structure proposals

• Status: Complete

• The development of the proposed funding structures was an important component within the FS Report. Following responses from NLC, the precise structures will be reviewed.

• Status: Complete

Submission of Feasibility Study Report to NLC

• A key milestone, the development of the FS Report was a collaborative process with YES Bank and Thermax and included a comprehensive review of the technical, commercial, financial and operational impacts, as well as the strategic outcomes from the delivery of the CDP on NLC’s site. The FS Report has been received positively by NLC.

Status of Development - Matmor�

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NLC
and
NMDC
have
both
made
public
statements
in
rela:on
to
their endeavours
with
ECT:

• On
  26
  August
  NLC
  released
  their
  Annual
  Report,
  sta:ng:

“Discussions are in progress with M/s. Environmental Clean Technology, Australia for developing a technology to produce lignite pellets of high calorific value with less moisture. Further, discussion for possibility of uClising the dried lignite in reducCon of iron ore (millings) to iron and also with lignite consuming industries for the suitability of the pellets in their system is also in progress.”

NLC
Annual
Report:
Sec:on
3
Page
15
Research
and
Development; hBp://www.nlcindia.com/investor/Annual Report 13-­‐14/Directors' Report 2013-­‐14.pdf

• On
  29
  September
  2014
  NMDC
  Chairman
  Narendra
  Kothari,
  in
  his
  address to
  shareholders,
  flagged
  plans
  to
  partner
  with
  ECT:

“Your Company is planning to enter into an area of iron making R&D jointly with ECT, an ASX listed company in Melbourne, Australia which has developed and patented… technology aimed at upgradaCon of low grade iron ore and millscale waste…” NMDC
website
–
Chairmans
Address,
slide
6
: hBps://www.nmdc.co.in/Handlers/DownloadFile.ashx?ID=6a6750b4-­‐a80c-­‐489b-­‐8040-­‐fab2348860c

Next Steps – Coldry�

Agreement to proceed with NLC

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• Status: Proceeding

• siting, raw coal supply, waste heat integration and Matmor opportunities

• Status: In progress – 95% complete

Establishment of ECT India

Agreement

• The formation of ECT India involves the establishment of a corporate entity with an appropriate structure to facilitate the company’s longterm objectives in India. Activity has commenced and key advisers are in the process of developing and assessing suitable legal and tax structures for the new company.

• Status: Pending

• Subject to currently progressing Project Feasibility Study assessment between NLC and ECT

Next Steps – Matmor�

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� Con:nue
tes:ng
program
with
interested
par:es – Ores,
Fines,
Slimes
and
others

Determine
the
range
of “recipes”
we
will
design the
Pilot
plant
around

– Lignite

– Batch
+
Semi-­‐Con:nuous
tes:ng

� Development
of
collabora:on
op:ons

� Pilot
plant
development

– Engineering
&
Scale
up

– Project
development,
Cos:ng,
etc

• Pilot
  plant
  project
  execu:on

Thank you � Ashley
Moore Managing
Director � info@ectltd.com.au � +613
9909
6784 � www.ectltd.com.au