old posts summary on proprietary tech

Hi all,

I've been digging through old posts on MHM from Jan - March 2010 so far and have compiled a number of posts that relate to the proprietary tech in use as it was the major item that I had not got my head around. I presume its ok to re-post them and that no one will mind as it'll save the same questions being asked over and over.

Before those though I'd like to say that there are a number of posters on this forum that have been putting in consistently and holding the faith with this stock for quite sometime - very impressive indeed. Thanks to you for your information and research that is below.

From reading through this timeframe it is VERY clear that MHM have a great relationship with Alcoa and my confidence has been bolstered a great deal.

I've divided each post with *****'s and these are cut and pasted without modification from various MHM threads during Jan - March 2010.


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I have just spoken to Ben Mead of MHM who confirmed the following in regard to protection of technology and he has

no objection to me posting the following.

Another process is used in Europe but far too costly.

Going to patent tells the world how to do it (China) and the copy cats go to work. It is expensive and time

consuming to try and protect the patent around the world.

The alternative path, which MHM is taking, is to do everything possible in-house to maintain the secrecy of the key

ingredient. They are doing this by producing it off site.
Ben Mead is of the opinion that MHM's protection of the technology is extremely tight.
Add to this the fact that MHM have an existing contract with Alcoa (which by the way "we have an excellent

relationship with on an almost daily basis") Alcoa will not go anywhere else and "this augers well for other plants

and puts us in an excellent position to win the 2 USA plants and any additional sites would be a bonus"

Ben is extremely pleased to see more and more acceptance of what MHM is setting out to achieve.


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For those who don't know, MHM have recently bought a SIMS recycling plant and are currently upgrading to

incorporate the new technology, and thus the recycling process will avoid sending a number of byproducts to

landfill - one of which is substantial amounts of aluminium - thus allowing the byproducts to be sold themselves.

However, for anyone willing to do a bit of research it seems clear that the chemistry behind the method is fairly

well known. In particular German companies have had a closed loop system since 1993, when dumping of waste products

was no longer allowed. There are in fact at least 2 different processes used, both slightly different in chemical

process and resulting in different byproducts.

I'm trying to convert document for HC posting, but in a nutshell the method involves dry then wet process; crushing

and screening in dry stage (most Al taken out at this stage); salt dissolved, producing a number of gases (taken

out, exhausted or sold); the salt solution thickened, dried, crystalised. Water is added, and I think gases such as

methane are released.

The "proprietary technology" is a chemical, such as sulfuric acid, used at various stages of the process. I don't

know exactly what it is (I'm not a chemist) but it's not going to be some firepower additive.

The recycling process and salt slag treatment in Germany is all readily Google-able. As I said, I am going to try

and post the document that I have taken all the above from, but I am actually at work and therefore shouldn't be

here....

Sorry if anyone has covered these points before, but given the recent weekends comments, thought I would post the

above.

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David are you aware that the MD has a rather imoressive track record in new technologies

"Mr. Rogers also has extensive experience in mechanical and process design and implementation over a broad range of

industries. The provision of new and innovative solutions to processing and operational problems led to the design,

construction and operation of;

The first Carbon-In-Pulp gold plant in Australia
The first methanol gold desorption plant"

Above From MHM company website


I doubt at his stage in life he is going to compromise his reputation with some type con job.

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hi jhird, i was wondering what your thoughts were that there is no patent in place ,more the reliance on a

propriety chemical for the salt slag process, should i have a worry on this point?

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Other posts in other threads have touched on this issue - on one hand there is the benefit of having the patent, on

the other a patent spells out exactly how to perform the process to anyone. What likelihood is there that pirates

(not the BCC kind) would be brought to account if they used the chemical in question? Costly IMO.

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Sorry, just meant that there would be little recourse for MHM if other people/companies used the information from

the patent (which would have to spell out the entire process) to use as they wish, with no royalties paid. It would

be virtually impossible to police the use of the chemical in the process.

Better off to keep it a secret for as long as possible, I guess.

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Also, the use of the chemical seems to be a relatively small addition to the entire process. A simple Google search

shows the entire recycling process, it is well known and in use already. The chemical seems to just 'close the

loop' meaning more efficient end result.

Even if the chemical was not used, the process remains a viable one (any chemists out there care to elaborate on

this for me??? )
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6 Jan 2010 - Spoke to the company today.

I couldn't believe the figures but they only get better. They said that they saw themselves as a technology

company. I donn't care what they see themselves as, so long as they meet targets.

I confirmed that the $230,000 and $8.6 mil were after the roayalty was paid.

Asked about patent and they unconcerned as of now as they are getting established under the radar.

They are very positive and stressed that they have met every target.

Excited about tie in with Alcoa as this gives them street cred and they already talking to them about USA which is

their first target.

They are thing 2 plants in USA, and I asked them about future funding. Stated that they see no reason to go back to

shareholders for capital. Hope they correct in this.
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not all proprietary technology is patentable

of course it would be better with patent coverage but that doesn't mean the technology is easily replicable - you

can have know-how which with discretion can offer a great deal of protection

patents aren't the be all and end all anyway

so far they have delivered on all their promises, couldn't be happier as a holder

no guarantees with scale up but it's not as if we're having to pay a premium price, it's on a forward PE < 2 if it

goes smoothly
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MHM has exclusive global rights to the technology. i have spoken to a director about this: the technology is

patentable but is not being patented at this stage, as they perceive the risk of doing this, as opposed to keeping

aspects of the technology confidential, is much greater. sound smart to me - if you patent something it tells

everyone else how you are doing it. how could you know if someone in China or elsewhere was copying you based on

the specific formula you have provided the patent office. by keeping the technology inhouse these risks are

negated. they have not ruled out patenting the technology in the future if it is perceived to be in the best

interests on the company, but for now they do not believe it is.
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there's not much information about the process of Salt Slag recycling available on the net...

it is however very interesting to see who else tried too tackle the process of recycling Salt Slag earlier on i.e.
Argonne National Laboratory managed by The University
of Chicago for the Department of Energy...

their Project Summary
● History:
- 1990: US DOE-sponsored assessment study
- 1994: bench-scale work begins at Argonne
- 1996: Argonne & Alumitech begin collaboration
- 1998: Argonne begins pilot-scale tests
- 2001: Experimental work suspended

● Preliminary conclusions:
- Many technical solutions possible
- No economical solutions yet for salt cake recycling
- Best option is maximize aluminum recovery and disposal of residues in controlled landfill
- Economic and environmental analysis suggested that recycling salt cake is not desirable


well, that has obviously changed with the process MHM has developed...

Source:
http://www.idalsa.com/wp-content/themes/idalsa/pdf/IDALSA,%20RECYCLING%20ALUMINIUM%20SALT%20CAKE.pdf

also some info in this pdf about NMP which has been mentioned in a recent announcement

I don't know how old the presentation is as it is not dated however the document properties are showing the pdf was

created in July 2008


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just stumbled across an other presentation "Salt Cake Management at Secondary Aluminum Smelters:A Case Study of

Best Practice" ...

http://www.es.anl.gov/Energy_systems/Process_Engineering/Aluminum%20Recycling/documents/Salt%20Cake%20Management

%20at%20Secondary%20Aluminum%20Smelters%20-%20A%20Case%20Study%20of%20Best%20Practice.pdf

"Total recycling of salt cake will be environmentally acceptable only when aluminum processors and dross processors

limit (eliminate) aluminum nitride formation during processing

Is MHM holding the holy grail in regard to elimination of AlN (Aluminum Nitride)?

it must be otherwise it would be insane to spend a single $ on the Sims plant.

if the first few months of running the process at the Geelong plant will prove the elimination of AlN then there

will be no limit for this company IMO...

genious!
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Cheers,

Mark