CCT receives first licensing fee of $375,000
Wednesday, August 22 2012 - 01:38 AM WIB
US firm Clean Coal Technologies, Inc. (CCT) announced the receipt of the first $375,000 from Jindal Steel and Power Ltd. as part of a 25-year Technology License Agreement (TLA) related to the construction of a plant that will reduce coal moisture at Jindal's mines in Indonesia.
"This payment is another significant milestone for Clean Coal Technologies and its shareholders," Robin Eves, Director, President and CEO of Clean Coal Technologies stated in the statement. "We are pleased with this infusion of capital, combined with the affirmation of our role in the increasingly important clean energy sector. To work with a partner such as Jindal Steel with such a significant presence in the ASEAN region is a tremendous opportunity."
Under the TLA, Clean Coal Technologies will receive an on-going royalty fee of $1 per ton on all coal processed from Jindal majority-owned mines in the ASEAN region, up to 4 million tons or $4 million per annum with a waiver of additional royalty fees on further processed coal up to a total of 8 million tons per year. If coal processing increases above 8 million tons per year, the royalty will be reinstated and Parties have agreed to review the rate.
In addition to the royalty fee, Jindal will pay Clean Coal Technologies a one-time license fee of US $750,000.
"We firmly believe that we will offer one of the most practical and effective clean energy solutions in the global marketplace and our agreements with major entities such as SAIC and Jindal Steel certainly bolster our leadership in this industry and our ability to bring other major players to the clean energy table going forward," Eves said.
Editing by Adianto P. Simamora