Successful Vietnam, Indonesia, China and Japan Trip

  • Tellus creates value by developing partnerships with Asian businesses and experts
  • Vietnam – Inspection of kaolin operations and commencement of formal marketing agreement discussions to cover South-East Asian markets
  • Indonesia – Introduction to key industrial salt user groups and development of salt marketing strategy and distribution framework for key customers
  • China – Material progression towards equipment supply agreement with CCTEG
  • China – Positive equipment and project financing discussions with Chinese banks
  • Japan – identifying world’s best practice technology providers and commencement of formal commercial discussions

 

Tellus Holdings Ltd (“Tellus”) reports good progress on its dual revenue infrastructure facilities in Australia. As the Tellus projects move through their development and approval processes, the company is working with key commercial and technical partners from around the world to ensure global best practice operational process and technical solutions are incorporated into the project definitions.

“To that end, key Tellus executives recently completed successful trips within Asia, where significant project value can be created through partnership with local businesses and experts. In January and February, we visited Vietnam, Indonesia, China and Japan and met with a number of commodity users, equipment suppliers, service providers, technology partners and financiers,” said Tellus Managing Director Duncan van der Merwe.

Fig. 1: Vietnam - visit to kaolin ceramic operations
Fig. 2: Indonesia - visit to Indonesian Government officials and commercial discussions with salt commodity parties
Fig 3: China - mine equipment assembly plant visits and commercial discussions with financiers

Kaolin:

South-East Asia is the crucial geographic focus for Tellus’ kaolin output as this is the most rapidly growing manufacturing hub for tableware ceramics due to its lower cost base and proximity to the largest markets in broader Asian region.

In Vietnam, a Tellus executive inspected kaolin mining operations and tableware manufacturers and visited independent testing agencies to discuss the positive results of test work conducted on Tellus kaolin. Tellus expects to be in a position shortly to announce the finalisation of a marketing agreement that will cover South-East Asia for its Sandy Ridge kaolin project in Western Australia.

Salt:

Indonesia represents an important potential market for Tellus’ industrial salt output given, with its large heavy industry customers and geographical proximity to Tellus’ export port of Darwin. Tellus executives met with potential commodity distribution partners and key Indonesian government officials. Tellus expects to be in a position shortly to announce the finalisation of salt distribution arrangements in Indonesia along with its first commodity offtake agreement.

Mine Equipment and Technology:

In October 2015 Tellus visited China and signed a Memorandum of Understanding (MOU) with China Coal and Technology Engineering Group (CCTEG). CCTEG is a large Chinese State-owned enterprise and dominant supplier of underground mining equipment in China as well as a proven equipment supplier in the international mining market. The MOU covered both the supply of mining equipment for Tellus’ projects as well as associated AUD 120 million equipment financing package for the purchase. During Tellus’ February trip to China, Tellus executives inspected some of the mining equipment assembly facilities of CCTEG and progressed technical and commercial parameters around the supply of equipment.

During Tellus’ February trip to Japan, a Tellus executive met with Japanese technology providers and have commenced formal commercial discussions. Japan has a toolbox of world’s best practice technologies that are relevant to Tellus’ projects.

Finance:

Tellus also met with key Chinese banking parties to progress discussions relating to senior debt project finance, in addition to CCTEG equipment finance that was discussed previously. Tellus is excited about the potential attractive funding packages that may be available to Tellus’ long term infrastructure business.

Next steps:

Tellus continues to believe that significant value can be created for shareholders from collaborating with key international commodity, technology and financial partners, especially those from the geographically important Asian region. As part of its forward scope of works, Tellus will continue to work with key parties to finalise and formalise arrangements as appropriate. On achievement of material milestones, separate news releases will be issued.

About Tellus Holdings:
Tellus Holdings Ltd is an infrastructure project development company with a proposed dual revenue infrastructure business model. This involves mining the commodities salt and kaolin and backfilling the voids left from mining with equipment, archives or long term storage of waste. Tellus plans to store like-with-like materials, so as to create opportunities for the future long- term, storage, treatment and recovery of valuable materials or the permanent isolation of waste. Tellus’ business model mirrors world’s best practice solutions operating in the UK, Europe, USA and Canada. Tellus is developing the Chandler project in the Northern Territory (NT) and the Sandy Ridge project in Western Australia. Tellus’ flagship ‘Chandler Project’ has been awarded Major Project Status by the Northern Territory Government.

For further information:
Visit: www.tellusholdings.com.au or contact:

Duncan van der Merwe
Managing Director
Tel: +61 (0)2 8257 3395

Corporate and Chandler Project:
Jane Munday
Michels Warren Munday (Media)
Mob: +61 (0)427 880 083

Sandy Ridge Project:
Cameron Morse
FTI Consulting (Media)
Tel: +61 (0)8 9485 8888

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