Clean Invest Africa Plc Commencement of Commercial Production

 
TIDMCIA 
 
4 July 2022 
 
                            CLEAN INVEST AFRICA PLC 
 
             ("Clean Invest Africa", the "Group" or the "Company") 
 
           CoalTech Announces Commencement of Commercial Production 
 
CoalTech to commence commercial coal production, initially 3,500 tonnes per 
month and rising to 7,000/7,500 tonnes per month in 2023. 
 
Clean Invest Africa Plc is pleased to announce the commencement of commercial 
production by its clean coal subsidiary, CoalTech. The commencement of this 
commercial production strategy involves the full operationalisation and 
commercialisation of its existing pelletising plant at its South African Bulpan 
site. Previously the plant was, as announced, used extensively as a test 
facility for potential large-scale clients. CoalTech believes it has 
successfully completed sufficient client testing with an almost 100% client 
satisfaction outcome and that the time is now right to commence in-house 
commercial production. 
 
CoalTech is planning to use its plant at its Bulpan site in South Africa to 
produce commercial quantities of coal with a target of producing 7,000-7,500 
tonnes per month in 2023, generating revenue of approximately USD450,000 - 
USD500,000 monthly and with an annual estimated net profit in the region of 
USD1.2m. 
 
CoalTech anticipates the first production and sales of coal pellets to occur in 
September 2022. Contracts associated with suppliers, operational readiness and 
commencement of production activities of the Bulpan Plant are currently being 
discussed with potential partners, which will be responsible for the supply of 
coal fines and for the sale of pellets and these arrangements should be 
finalised shortly. Further announcements will be made in due course. 
 
Initial production volumes, based on a single shift only, are expected to ramp 
up over 8-12 weeks to a regular output volume of 3,500 tonnes per month. Once 
these targets are achieved, and with approximately USD250,000 in capital 
expenditure, and improvements to local infrastructure, this will lead to a 
double shift operation aiming for  7,000-7,500 tonnes per month of regular 
output. 
 
This commercial production strategy is in addition to CoalTech's current 
strategy of running testing for potential large-scale customers. Significant 
large scale client testing has taken place over the prior years and a final 
large-scale test is currently being completed. These tests have been 
overwhelmingly successful. As a result of the successful testing, discussions 
continue with a number of potential customers. These discussions have been seen 
to involve very long lead times. For example, the recent successful test and 
subsequent discussions in Columbia were expected to be concluded in June 2022. 
These are progressing, albeit slowly, and CoalTech is optimistic that these 
will lead to a commercial agreement. Any one of these potential arrangements 
under discussion would be on a large scale (for example 2 x 28,000 tonnes per 
month are under discussion with one potential client). In addition, such 
contracts would be long term with likely output over 10-20 years and hence game 
changing in scale and scope for CoalTech if commercial terms are reached. 
CoalTech will continue to advance these commercial discussions in parallel with 
its commercial production strategy. 
 
The opportunity for CoalTech to produce and sell output is currently too 
attractive to ignore. There is a global spike in demand for coal, and 
substantially increased selling prices of coal have improved the business case 
to self-produce at Bulpan. Should a testing customer nevertheless wish to 
conduct further testing, commercial terms can always be agreed based on a 
number of options. CoalTech has developed and plans, subject to cash flow 
generation, to commission a mobile testing plant with a capacity of 
approximately 500 tonnes per month. CoalTech currently has a testing device for 
much smaller volumes which it already uses for clients as required. 
 
Shaikh Mohamed Abdulla Khalifa AlKhalifa, Chairman of Clean Invest Africa 
remarked that "this commercial production strategy is a very significant 
development for CoalTech with potential for cash flow and profitability in the 
near term, whilst in parallel enabling CoalTech to advance its negotiations for 
much larger scale commercial agreements, which upon agreement will be game 
changing." 
 
Filippo Fantechi Founder and CEO added that "the Company plans to marshall all 
available resources with commercial rigour to ensure production and sales 
targets are met at what is a most exciting time for CoalTech." 
 
The Directors of the Company accept responsibility for the contents of this 
announcement. 
 
ENQUIRIES : 
 
Clean Invest Africa plc 
 
Filippo Fantechi (Executive Director) [phone] 
 
Shaikh Mohamed Abdulla Khalifa AlKhalifa (Non-Executive Chairman) +973 3969 
2299 
 
Peterhouse Capital Limited 
 
Corporate Adviser [phone] Guy Miller/Mark Anwyl 
 
 
 
END 
 
 

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July 04, 2022 02:00 ET (06:00 GMT)