mhm commissioning update

MHM COMMISSIONING UPDATE


MHM Metals Limited (ASX:MHM) confirms that test runs have been successfully completed on each of the plant
components at the salt slag recycling facility operated by wholly-owned subsidiary Alreco Pty Ltd. The wet
(washing) circuits have all been run independently and their ability to handle the required volumes and tonnages
verified.
The final step in the commissioning process will be to run all components of the upgraded plant in unison. This
process requires additional power supply than was previously available to the site. Despite Alreco applying for
supplementary power supply at the earliest opportunity, there has been some delay with metering and
commissioning which unfortunately has been beyond the company's control.
Alreco has completed all internal electrical upgrades and the relevant power company has installed new metres
as required, with the only item outstanding being their final commissioning and sign off by the power company.
MHM anticipates making a further announcement in the next short period to confirm that commissioning of the
plant is finalised.
The plant has been successfully producing AL80 over the last month. This is in accordance with the contract
executed with Impex Minerals Pty Ltd as announced to the ASX on 14 June 2011.
Brine evaporation pond construction has reached sufficient capacity to accommodate full plant throughput.
Each pond has a four-month capacity. Construction work will continue on additional ponds as required.
The pipeline running from Alreco's plant to the brine storage ponds is in place. The pipeline is fully operational
and ready for use. Alreco has executed a licence agreement with Alcoa with respect to the ongoing use of the
pipeline as the pipeline crosses Alcoa's land.
The directors of MHM appreciate that there has been some frustration at the delays incurred in the plant
upgrade and commissioning process. The board wishes to remind shareholders that this plant is a "world first",
and the first of what is expected to be a number of these facilities located across the globe. As is commonplace
with new processes there have been unexpected delays and lessons learnt that will speed the
construction and commissioning of future plant construction. There have also been a number of events that
have been entirely outside of the company's control and sustained efforts are being made to conclude the
commissioning process as quickly as possible.