Mr. Slawek Smulewicz reports
PROJECT ADVANCES FOR CONSTRUCTION OF CLEAN COAL UPGRADING FACILITY IN INDONESIA TO TOTAL $1.32 MILLION
PT Wijaya Tri
Utama (PWTU) has agreed to advance a total of $1.32-million
(U.S.) to Microcoal Technologies Inc. pursuant to the master coal upgrade agreement dated July 17, 2013, and now amended by agreement of the parties (see July 29,
2013, news release). To date, the company has received 15 per cent
($900,000) of the contracted price, with the balance of the prepayment
being 7 per cent ($420,000) payable by Dec. 23, 2013. The full contract
price is $6-million (U.S.) and the balance of the payment is being secured
by an irrevocable letter of credit arranged by PWTU. In addition to the
contracted price, Microcoal will receive an annual royalty fee of
$360,000 (6 per cent of the construction price) for a period of six years
after completion, plus maintenance fees to be negotiated.
The facility, now under construction, is located on site at the PWTU
coal-fired power plant on the island of Kalimantan, Indonesia, and is
designed to upgrade the calorific value of approximately 190,000 tonnes
per year of low-rank coal (approximately 8,000 British thermal units per pound) to a higher
calorific coal (approximately 9,000 British thermal units per pound) by removing up to 10 per cent of
the total moisture. Microcoal has concluded that its technology can
substantially increase the calorific content of this specific low-rank
Indonesian coal above 11,000 British thermal units per pound by further reducing the moisture
content.
Slawek Smulewicz, chief executive officer and director of the company, states: "The
construction of this project, now under way in Indonesia, is validation
of the importance of our technology as part of a global energy solution
that improves the thermal output of coal and reduces the pollution it
generates. We are extremely delighted that PT Wijaya Tri Utama has
purchased the Microcoal technology to optimize the performance of its coal plant, as Indonesia is one of the world's largest consumers of
low-rank coal. This first commercial installation in Indonesia will
serve to showcase the scalability of our modular microwave coal drying
and upgrading technology, which we plan to apply to coal-fired power
plants worldwide."
We seek Safe Harbor.
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