TEF and India Project Q: I read the TEF is to cover a 500,000...

TEF and India Project
Q: I read the TEF is to cover a 500,000 tonnes integrated steel plant, but that's not what you intend to build first. Can you please advise why this is the case?
A: Under the Tripartite Collaboration Agreement the parties are working toward the ultimate objective of commercial deployment for both Coldry and Matmor. As previously announced, the Coldry demonstration has been scoped to an appropriate level, providing acceptable capex and opex estimates. Matmor is a stage of development behind Coldry, so the TEF is aimed at delivering an appropriate project estimate to help narrow down the scope of investment expected to be required to move through R&D to commercialisation. This also provides a snap shot of the potential commercial outcomes, to underpin the decision making process by our Indian partners around allocation of R&D funding, satisfying their internal funding allocation requirements.

Q: Both YES Bank and GWI received $20,000 in consulting fees for meeting the TPA milestone and they will continue to receive bonuses related to future milestones. One of the future milestones is ‘the signing of a binding construction contract’. My questions are (1) in what material ways will the construction contract’s binding status differ from the TPA’s binding status; and (2) will the binding construction contract provide details of the capital structure and related financial details only for the integrated pilot scale plant?
A: Material differences – That its focused on the plant construction, as a specific item, as opposed to the overall project. Yes, those agreements will contain very specific capital, legal, commercial and transaction structure details.

Q: Will NPV and IRR figures for Matmor be announced post TEF study?
A: We expect that certain values will be outlined upon completion of the TEF and this will be done in co-operation with our partners, NLC and NMDC, on the project.

Q: In your opinion, are the reps from NLC & NMDC as optimistic as ECT management?
A: ECT has stated several times that our partners remain keen to proceed with the project. That stance is unchanged as we collectively go through the TEF. The management at NLC have made this a very high priority project, and are very active in support.

Q: If all things go ahead as planned Is or Would a dual listing ASX / India Exchange be considered?
A: That is not something we’ve considered at the moment. The Indian listing rules are very different to those in Australia, and we’re fully engaged in our activities on the project development at the moment, with full utilisation of our internal resources. That said, we wouldn’t rule these types of consideration in or out until we were more fully informed.

Q: Re the current design phase and TEF works being undertaken by all interested parties - who is picking up the cheque for this process.
A: ECT has engaged MN Dastur for the works in support of the TEF. That is important, since all IP developed from this work is then unequivocally the property of ECT, and can be used on any other ECT projects. The Dastur work is part of the TEF package, the balance of which is largely being executed by ECT resources, in collaboration with NLC and NMDC. Please note prior ASX announcements regarding the Working Group meetings.

Q: TEF gets submitted to the NLC/ NMDC boards late June /August; have they given the company any idea of when they will return with a decision?
A: We know there will be a review process, and it will be managed differently by each company. We expect it will be simpler than all prior experiences.

Q: Integrated Coldry / Matmor plant... What's the intended output on the Matmor pilot?
A: We’re aiming for ~1-2 tph hot metal. Precise sizing will be determined as we proceed.