+++++++++++++++++++++++++ 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.
IMH Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held