Successful China Trade and Investment Trip

  • On : November 12, 2012

Media Release

APPROVED FOR RELEASE

Key points:

  • Tellus joined the Northern Territory Government’s trade and investment delegation to China
  • Tellus Salt received expressions of interest for salt and fertilisers
  • Tellus Salt entered into commercial negotiations with Chinese salt buyers, supply chain companies, equipment suppliers and potential investors
  • Chinese salt market is 80 million tonnes per annum and growing at 3-5% per annum.

A recent trip to China by Tellus executives, Duncan van der Merwe, Group Managing Director, Bob Emery, Chairman Tellus Salt, and Mike Carter, Sales and Marketing Executive attracted expressions of interest from potential salt customers, supply chain companies and investors.

Tellus accompanied a Northern Territory Government trade and investment delegation that included the Minister for Mines and Energy Willem Westra van Holthe.

Tellus has commenced commercial negotiations and looks forward to developing long-term relationships.

Tellus thanks the Northern Territory Government for its support through the Government’s Trade Support Scheme and facilitating discussions with Chinese buyers, potential investors and key stakeholders.

Progress on the Chandler rock salt project in Central Australia was presented during the China Mining Congress and Expo. Tellus has a 4.5-5.0 billion tonne high quality multi-mineral rock salt deposit and has started work on a definitive feasibility study (DFS). The DFS includes prequalification discussions with potential salt customers and investors in China and other Asian markets for the project, which is based on successful rock salt mine and complementary storage business models in the USA and in Europe.

“We plan to export about one million tonnes a year (1 Mtpa) of salt and associated minerals (fertilisers) to the Asian market,” Mr van der Merwe said. “The Chinese salt market is 80 Mtpa and growing at 3-5% a year. The Chinese are particularly interested in the project’s salt quality, reliability of underground rock salt mine supply (versus solar evaporative pond supply that can be severely affected by wet weather events) and the ability to scale the project up to meet rising demand in Asia.”

According to statements by the Hon. Willem Westra van Holthe, Northern Territory Minister for Mines and Energy, during the Trade and Investment Delegation:

  • the Northern Territory Government has identified mining and energy as a key element of its ‘three hub’ economic development strategy
  • growing the mining and exploration sector in the Territory means securing investment for local projects
  • since 2006, more than 20 Chinese companies have invested in Northern Territory minerals exploration projects. These investors are both private Chinese companies and State-owned enterprises
  • the Northern Territory Government is proud of its strong links with China, including relationships with China Development Bank, China Chamber of Commerce of Metals, Minerals and Chemicals, Importers and Exporters and the China Mining Association
  • the Northern Territory Government will continue to welcome Chinese investment and do what it can to support Chinese investors.

A senior executive from the China Chamber of Commerce of Metals Minerals and Chemical Importers recognised the Northern Territory as the eighth best investment destination for Chinese sectors.

Pictured above from left to right are Duncan van der Merwe (Tellus Group – Managing Director), Hon. Willem Westra van Holthe (Minister for Mines and Energy), Mike Carter (Tellus Salt – Chairman), Bob Emery (Tellus Salt – sales and Marketing Executive).

For further information contact:

Visit: www.tellusholdings.com.au or contact:
Duncan van der Merwe, Managing Director Tel: +61 (0)2 9241-7678
Jane Munday, Michels Warren Munday on +61 0427 880 083