Aug 2 2013
BioteQ Environmental Technologies, Inc., a leader in industrial wastewater treatment, has signed an agreement with joint venture partner Jiangxi Copper Company (JCC), the largest copper mining company in China, to build a water treatment plant at the Yinshan Mine site. The Yinshan Mine is an active copper mine located in southeast China approximately 30 km from the Dexing site where the joint venture has existing metals recovery water treatment plants.
The Yinshan water treatment plant will apply BioteQ’s patented ChemSulphide® process technology to selectively recover dissolved copper from mine drainage. Designed to treat up to 17,000 cubic metres of water per day, the plant is expected to recover approximately 930,000 pounds of copper concentrate per year that will be sold to JCC’s refinery at market prices.
The joint venture partners have committed a total of CDN $2.4 million to build the plant and will share equally in the capital costs and in the profits generated from operations. BioteQ’s share of the capital cost will be funded from existing cash reserves of the joint venture. During plant execution, BioteQ will contribute engineering design resources, work with JCC to procure key process equipment and provide commissioning support services. JCC will be responsible for permitting and management of site construction. Staff from the existing joint venture will provide commissioning and operating services. Construction is slated to be completed and the plant in operation in Q2 2014.
BioteQ estimates the Yinshan ChemSulphide® copper recovery plant will provide incremental recurring revenues of $2.4 to $2.8 million annually to the joint venture, of which 50% will accrue to BioteQ. Revenue generation from the plant will be subject to market copper prices, the amount of dissolved copper in the water and annual precipitation levels.
During 2013 BioteQ and JCC have also been working together on two additional metals recovery plants at JCC’s Dexing mine site – a Met-IX™ nickel/cobalt recovery plant and a ChemSulphide® copper recovery plant. These two plants are presently scheduled to start up in Q3 2013 and Q2 2014 respectively.
BioteQ’s involvement in the design, construction and commissioning of the facility announced today plus its involvement in the two additional facilities currently being constructed and commissioned, represents a significant investment of capital and internal personnel resources during 2013 which will positively impact revenue and cash flow in 2014 and beyond. Taken together, these three new facilities will contribute approximately $3 million in additional recurring revenues to BioteQ on a full year basis (i.e. in 2015).
Jonathan Wilkinson, BioteQ’s Chief Executive Officer stated, “We are very pleased to be further strengthening our relationship with Jiangxi Copper Company in addressing water treatment needs at JCC sites. The project will enable the company to further enhance its operating and recurring revenue base while concurrently pursuing technology solution orders from customers who wish to maintain ownership of plant assets. BioteQ anticipates that having all three new China plants on stream by Q3 2014 will enable the company to achieve a sustainable EBITDA positive financial position as early as FY 2014.”
The Yinshan plant is the fifth water treatment project between BioteQ and JCC. In 2006, BioteQ and JCC formed a joint venture to apply BioteQ’s proprietary process technologies at JCC’s mine sites. To date, the partners have designed, built and operated two water treatment plants at the Dexing mine site including a ChemSulphide® copper recovery plant that removes approximately 1.7 million pounds of copper annually from the environment and a BioteQ designed HDS-lime treatment plant. Presently a Met-IX™ plant for nickel/cobalt recovery is undergoing optimization at the Dexing site and a second ChemSulphide® copper recovery plant is also presently under construction at Dexing. The joint venture projects have been recognized with several national and international awards for environmental performance and sustainability.