additonal us processing contract, page-4

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Here it is for all to read


ADDITIONAL US PROCESSING CONTRACT
ASX Release – 10 November 2011
MHM Metals Limited (ASX:MHM) has secured an additional processing contract for the supply of feedstock to
the planned US salt slag and black dross processing facility. The twelve month contract has been structured as
a ‘tipping’ arrangement, where MHM assumes ownership of recovered aluminium, salt flux and aluminium
oxide. The contract provides a mechanism for the parties to explore a tolling arrangement where the customer
retains ownership of recovered aluminium and salt flux, on the basis of demonstrated recoveries.
Following MHM’s announcement of the first supply contract on 4 November, this additional contract is an
immensely positive development for MHM, demonstrating continued progression in the global expansion of the
company’s aluminium waste recycling technology.
Due to the dynamics of the US aluminium industry, the details of this contract must remain confidential and
MHM must refrain from revealing the counterparty or contract terms.
Subsequent companies that engage contractually with MHM may also require contract information and
company names to remain confidential prior to commencement of MHM’s US operations. A number of US
aluminium companies accepting the MHM solution may experience reduced or denied landfill access or large
landfill cost increases if identified as contracting with MHM. This is particularly problematic in the period
between contracting for waste recycling and commencement of MHM’s operations.
Due to contractual limitations MHM also cannot reveal tonnages to be processed. MHM intends to later provide
overall contracted supply volumes when it can be done so in a manner that provides no risk for identification of
the underlying counterparties. The anticipated processing capacity of the first US plant remains 200,000-
250,000 tonnes per annum.
MHM continues to engage with a number of other companies with substantial salt slag and black dross
volumes and management is working diligently to secure additional processing contracts in the near future.
Site due diligence continues to progress well, and MHM remains on track to complete the land acquisition at the
end of January subject to finalisation of government incentives and concluding environmental due diligence.
Phase one of the environmental study of the property has not identified any issues of concern, and the testing
is being conducted as part of a standard approach applied with any US property acquisition.
MHM is working to finalise the date for a press conference, anticipated to be held together with senior
government officials, during which details of the property purchase and availability of government incentives
and support for the project will be released. Whilst the government incentives must be formally approved,
MHM remains confident that the environmental and economic benefits of MHM’s business, and the positive
impacts upon the sustainability of the aluminium industry, will herald significant support from government.
MHM hopes to conduct this press conference as soon as possible, in the coming weeks.
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Good luck to all that hold MHM.
The technology we have is out of this world and soon to be around this world