developments in china

Developments in China

Announced by: IMT HOLDINGS LIMITED (IMH)
Announced on: 30/01/2003 19:29:05
Part: A
Words: 474
Status: Not market sensitive (N)



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IMT HOLDINGS LIMITED 2003-01-30 ASX-SIGNAL-G

HOMEX - Sydney

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The Board of IMT is pleased to announce the latest developments in
the establishment of the Phoslock business in China.

* Treatment of three eutrophied ponds adjacent to Lake Dianchi in
Yunnan Province with a total treatment area of 10,000sqm will
commence on 15 February, 2003. This will require approximately 15,000
litres of Phoslock Liquid.

* Subject to this treatment being successful IMT has been advised
that treatment of Lake Luzai, a eutrophied lake within 20km of Lake
Dianchi with a total treatment area of 30sqkm, will commence in
April, 2003. This will require approximately 37.5 million litres of
Phoslock Liquid.

* Treatment of Lake Dianchi with a total treatment area of 300sqkm
will commence upon successful completion of the Lake Luzai project.
This will require 375 million litres of Phoslock Liquid.

* Two sewage treatment plants ("STP's") in Kunming City in Yunnan
have commenced the engineering design work to improve their treatment
process. Adopted design features include the use of Phoslock to
reduce treated effluent phosphorus levels to low levels. The use of
Phoslock has been selected as an option to replace the use of other
chemical dosing procedures subject to the design engineering plans
being adopted. Subject to Chinese government approvals, operations
using Phoslock may commence in late 2003. China has many thousands of
STP's which could be adapted to use Phoslock in their treatment
process. The potential exists to establish a significant and
recurring income stream from Phoslock application to STP's in China.

REVENUE

(a) LAKES

The Phoslock treatment will generate revenue of 0.8 RMB per sqm for
large water bodies such as Lakes Luzai and Dianchi. Smaller water
bodies will be calculated case by case. Revenue for the larger lakes
is estimated as follows:

* Lake Luzai RMB 24,000,000 (A$5.2 million)

* Lake Dianchi RMB 240,000,000 (A$ 52.1 million)

(b) STP's

Revenue from the supply of Phoslock to the two Kunming STP's has been
estimated at RMB 14,000,000 (AUD $3.0m) per year.

LOGISTICS

Engineering work on the various application plant and equipment has
been commissioned. This includes the design of a vessel to be used to
apply Phoslock to large lakes.

The treatment of the ponds and Lake Luzai will provide IMT with
valuable experience and knowledge of the practical aspects of the
manufacture and application of Phoslock in China. This experience
will be invaluable in undertaking the treatment of the many
eutrophied water bodies throughout China including Lake Dianchi.

As a result of the development of the projects, it has become
necessary to ensure that arrangements are in place for the
manufacture and supply of Phoslock. To achieve this, IMT will enter
into a joint venture agreement which is described in an announcement
made by the Company today.

For further details, please contact Brett Crowley, CEO, on
02 9698 0622.