Clean Coal, Jindal sign TLA
Thursday, April 5 2012 - 01:38 AM WIB
US firm, Clean Coal Technologies, Inc. (CCTI) has signed a 25-year Technology License Agreement (TLA) with Jindal Steel and Power Ltd that would allow the latter to focus on its core business model in Indonesia of supplying dry, high-quality coal to their steel and power businesses in India, while the CCTI would focus on the development and marketing of its technology to third parties.
Under the TLA, the CCTI will receive an on-going royalty fee of US$$1 per ton on all coal processed from Jindal majority-owned mines in the ASEAN region, up to four million tons or $4,000,000 per annum with a waiver of additional royalty fees on further processed coal up to a total of eight million tons per year.
?If coal processing increases above eight million tons per year, the royalty will be reinstated and Parties have agreed to review the rate,? CCTI said in the statement.
In addition to the royalty fee, Jindal will pay CCTI a one-time license fee of US$750,000.
It said that the license fee will be paid in two installments of $375,000 upon signing of a Pilot Plant construction contract and $375,000 upon the successful testing of Jindal's Indonesian coal at the Pilot Plant.
?We are delighted to have signed this royalty-bearing agreement with Jindal. With this, CCTI has added a second important commercial client in Indonesia that intends to commence construction of a commercial plant immediately after the testing of its coal at the Pilot Plant,? CCTI?s CEO, Robin Eves said.
?Together with the Archean Group TLA, CCTI has made a quick start in the development of a pipeline of commercial projects in Asia. We are very excited that our first commercial clients are prominent companies that are well-known and highly-regarded in Asia. Each of these companies has in place a widespread Eastern Hemisphere commercial network in its respective business.?
It said that the construction of the Pilot Plant in Oklahoma will commence immediately upon execution of the EPC Contract by the JV which was expected to be signed in April. It said that the Pilot Plant is scheduled to be completed within 16 to 24 weeks with the testing of the Jindal coal is expected to take place before the end of 2012.
Editing by Adianto P. Simamora