VIROTEC INTERNATIONAL LTDABN 81 004 801 398PO BOX 188SANCTUARY...

VIROTEC INTERNATIONAL LTD
ABN 81 004 801 398
PO BOX 188
SANCTUARY COVE QLD 4212
AUSTRALIA
www.virotec.com
22 February 2005
SHAREHOLDER UPDATE
As a leader in the development and commercialisation of sustainable, environmental
technologies, Virotec International Ltd (Virotec) (ASX/AIM: VTI) remains focussed on
delivering its platform technologies through its tailored business streams, which include
(amongst others) the ViroProduction, ViroFlow, ViroSewage, ViroMine, ViroSoil and
ViroConcrete market segments. The Directors of Virotec are pleased to provide a brief update
to shareholders on a selection of what they believe to be strategically significant activities.
HYDRODEC TECHNOLOGY SALE
As a result of the sale of Virotec’s HydroDec technology, Virotec holds an equity position of
60 million shares in the newly established HydroDec Group plc (“HydroDec”) (AIM:HYR); the
value of which has increased substantially as a consequence of HydroDec’s strong
performance. The market value of Virotec’s shareholding in HydroDec is approximately
$AUD 40 million as of 21 February 2005.
VIROMINE
Laos Contract
Lane Xang Minerals Limited, a subsidiary of the international mining company Oxiana
Resources Limited, have entered into a $AUD 350,000 agreement for the supply of ViroMine
technology at the Sepon Gold Mine in Savannakhet Province, Laos. Following a site visit by
Virotec, the company has agreed to implement a ViroMine Acid B Extra™ pit lake treatment
and a ViroMine Acid B Extra™ permeable reactive barrier to assist in the protection of local
rainforest. A further ViroMine Terra B™ shotcrete application will also be trialed by the
company.
US EPA testing at Gilt Edge mine
Virotec recently received the fourth year of outstanding results from ongoing testing by the
United States Environment Protection Agency at the Gilt Edge Mine, a Superfund remediation
site, where the long term efficacy of ViroMine™ technology is being assessed on acid rock
leachate passing through a ViroMine™ permeable reactive barrier.
The measured concentrations for fourteen of the fifteen metal contaminants continue to be
below the detection limit for the procedure used. Iron, the fifteenth contaminant, measured
just 210ug/L (this compares to the control measurement of 21,000,000ug/L taken in 2003
from the untreated acid rock leachate). Testing for Total Dissolved Solids (TDS), Sodium and
Sulfate reveal consistent ongoing reductions with each passing year. The complete table
showing unprecedented four year results from the Gilt Edge mine can be viewed at
www.virotec.com/viromine.htm.
VIROTEC INTERNATIONAL LTD
ABN 81 004 801 398
PO BOX 188
SANCTUARY COVE QLD 4212
AUSTRALIA
www.virotec.com
VIROFLOW
Virotec is now positioned to aggressively pursue commercial opportunities in three different
ViroFlow markets as a result of the strong performance of the following ViroFlow reagents;
ElectroBind™, ViroPhos™ and ViroBind™.
Advance Plating
In the USA, Virotec recently installed a significant treatment facility (annual contract value,
$AUD 65,000) into Advance Plating, a Boston, Massachusetts plating company, where, after
three months of operation, ElectroBind™ has exceeded all treatment expectations. Market
analysis indicates there are over 10,000 electroplating facilities in North America and, as a
result, the company is currently formulating an expansion plan for North American operations.
The success in North America follows a range of commercial cont racts for ElectroBind™ in
Australia, including metal finishers located in in Melbourne and in Brisbane.
Colgate-Palmolive
After a substantial trial period in which Virotec was asked to prove the efficacy of its new
ViroPhos™ reagent, Virotec has formally entered into a two year license with Colgate-Palmolive
in Australia to ensure that they meet stringent requirements for the removal of
Phosphorous and suspended solids from its industrial effluent. The annual contract value is
$AUD 35,950.
Koppers Wood Products
Treatment of timber logs begins with a steaming process which opens the cells for a chemical
treatment, known as CCA, which involves adding copper and arsenic to protect the timber
from insect and fungal degradation, and chromium to chemically seal the copper and arsenic
into the timber. Virotec has recently expanded its ViroBind™ capabilities from the treatment of
CCA leachate to the more extensive problem of CCA solids. As a result, the company has
been awarded a 2 year contract for leachate management (annual contract value, $AUD
17,000) and a further contract for solids treatment with Koppers Wood Products in Tasmania.
VIROPRODUCTION
(Product manufacture utilising Basecon™ & Bauxsol™ Technologies)
Growing Product Range
Virotec continues to develop its multi -faceted Bauxsol™ Technology platform through
effective collaboration with potential end-users. The collaboration begins as early as possible
in the development phase to extract the greatest benefit possible from the collaboration and
our efforts focus on addressing pressing needs. Today, Virotec is in various stages of
technology/product development in approximately 18 different commercial market sectors and
this has resulted in the development of over 150 product blends.
Asia
As a result of our strategic relationship with Hatch Associates, Virotec has been retained to
asses the viability of introducing Basecon™ technology to several alumina refineries in Asia.
Initial laboratory evaluations will assess Basecon’s effectiveness at neutralizing and
stabilizing the hazardous red mud produced from varying Bayer and Sinter processes.
VIROTEC INTERNATIONAL LTD
ABN 81 004 801 398
PO BOX 188
Europe
Virotec has purchased a parcel of land close to the Eurallumina SPA refinery in Sardinia, as a
result of continued successful utilisation of Basecon™ technology on part of the waste stream
from the Eurallumina refinery, for the purposes of Bauxsol™ production, and increasing
demands for Virotec reagents. Planning is well developed for a new, continuous production
facility which will be built on the site. Various funding models are currently being evaluated.
North America
Virotec has entered into an arrangement for the initial supply of 100,000 tonnes of alumina
refinery residue in North America. This arrangement ensures an economic source of supply of
raw material suitable for Basecon™ conversion to Bauxsol™ raw material for the expansion
of Virotec’s North American operations.
VIROSEWAGE
WRc independent study
Virotec has recently retained the Water Research Centre based in Swindon, United Kingdom
(WRc) to independently assess the effectiveness of its ViroSewage™ reagent as a passive
ViroFilter™, an end of pipe solution for the extraction of Phosphorous from municipal waste
water. The company anticipates that the research will be conducted over a six month period.
This is an alternative application of the active dosing ViroSewage™ technology and will
enable Virotec to access a broader market with its ViroSewage™ products.
VIROCONCRETE
Virotec has entered into a joint venture arrangement to secure external funding of £150,000
research at the Queens University, Belfast to complete 15 months of testing on the
mechanical and durability properties of ViroConcrete™ for use as both a structural concrete
and shotcrete. The funding is being provided by way of a convertible note, and on completion
of testing, the JV participant will have the rights to commercialise the technology and convert
to 40% of the expanded capital. Subject to a satisfactory outcome, we believe that the testing
will provide all the independent trials and assessments necessary for Virotec to
commercialise the technology.
FINANCIAL REPORTING
Virotec’s half yearly financial report for the 6 months ended 31 December 2004 is expected to
be published on or about Thursday 24 February 2005.
If you require further information please contact Virotec, on telephone +617 5530 8014, by
email to [email protected] or visit our website at www.virotec.com.