Why wouldn't I ?IMT Holdings Limited Quick Quote: X.IMH 0.16...

Why wouldn't I ?


IMT Holdings Limited Quick Quote: X.IMH 0.16 (0.00)

Chairman`s Address to Shareholders
27/11/02 5:44:00 PM

IMT HOLDINGS LIMITED 2002-11-27 ASX-SIGNAL-G

HOMEX - Sydney

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Welcome to the first Annual General Meeting of IMT Holdings Limited,
following our successful capital raising and listing on the ASX on 16
August 2002.

As advised in our Annual Report for 2002, we continue to make sound
progress in the pursuit of our strategies, namely:

* The commercialisation of the new water treatment technology,
Phoslock;

* The extraction, processing and sale of a range of bentonite
products; and

* The development and commercialization of new environmental
technologies.

Firstly, looking at Phoslock:



CHINA



Our Lake Dianchi project continues to progress according to plan. We
remain confident that we will secure a commercial contract to treat
the lake with Phoslock, commencing in early 2003. Our Chinese
partners have secured a factory to be used for the manufacture of
Phoslock for the Lake Dianchi project, they have secured the raw
materials which will be required. Arrangements are being put in place
to export Phoslock from that plant to our licensee in the US and
other countries, especially Japan.



USA



Our licensee is awaiting EPA approval prior to an intensive sales
campaign. All materials and tests have been completed for EPA
approval, which is expected in mid-January.



Discussions are already underway with a number of prospects, all of
which have significant blue green algae problems. The prospects
include municipals in control of large lakes and golf courses.



AUSTRALIA



We are currently negotiating licences with two major water
authorities. Concurrent with these negotiations, the initial
treatment of water bodies under the control of those authorities is
scheduled for early December. Both of these projects will be on
commercial terms and are expected to be the precursor to the
treatment ofall water bodies under their jurisdiction which are
affected by blue green algae. We expect that the granting of these
licences will be a catalyst for other water authorities and rural
local governments to utilise Phoslock to remedy the many blue green
algae problems throughout Australia.



We are completing the planning for the treatment of ponds at a
northern NSW golf course. It is expected that the treatment of golf
course ponds will be a major source of recurrent revenue for IMT and
our US licensee, Purezza, as well as many other licensees.



JAPAN



Negotiations are continuing with one of Japan's largest water
treatment companies. At the same time, we are in the process of
documenting an agreement giving IMT an exclusive licence outside
Japan, for a Phoslock pelletising product, suitable for a number of
industrial and household wastewater applications. Phoslock in pellet
form is of major interest to operators of sewerage treatment plants
("STP"), where Phoslock can supplement or substitute other treatments
such as alum which have significant and adverse environmental
impacts. IMT is currently working with STP operators in China where
aluminum based products are being banned from use in any STP which
discharges its water to the environment.



With regard to bentonite:



Major developments include:



* The commencement of mining of a seam of a higher grade of
bentonite, suitable for the engineering markets;



* The opening of a new pit which will provide sufficient bentonite
for a number of years;



* Increased storage capacity to ensure additional stocks are
available for periods of high demand;



* Installation of bagging equipment to reduce the need to subcontract
bagging services; and



*Installation of a mill and a dryer to produce new products for the
drilling and other industrial markets.



Orders for export markets in Asia are increasing. Arrangements are in
the process of being completed with one of the world's major
bentonite marketers to supply their Asian customers. This will
greatly increase the throughput at the mine and will in turn reduce
average operating costs and provide a very reliable and constant
source of orders.



An aggressive approach to sales and product development in the
stockfeed and cat litter markets is being maintained.



As advised to the ASX on 18 November 2002, IMT converted a
shareholder loan to share capital at $0.20 per share. The capital
raised was $117,810.



Our two websites, www.imtholdings.com.au and www.phoslock.com.au will
become active this week.



Your Board is most encouraged by recent developments in both the
bentonite business and the Phoslock commercialisation.



Finally, on behalf on the Board, may I thank our CEO, Brett Crowley
and his team for their fine efforts over the last period.



G Cook
CHAIRMAN