Clean Coal Technologies (CCTC) has said that the final approval for its estimated $350m annual revenue clean coal project in Inner Mongolia is expected within the next few weeks.
According to the company, this time frame represents a delay in our original estimate for April, due primarily to delays in the completion and acceptance of the myriad of environmental impact, health and safety, land use, and human resources studies required by the Chinese provincial government.
On completion, this project will provide for a 30-year contract with an estimated value to the company of some 10.5 billion dollars.
CCTC continues its negotiations with Tianjin Tianning Coal Traders (TTCT) to finance and construct an initial 1.5 million ton clean coal facility in Inner Mongolia under a Technology Licensing Agreement (TLA).
The discussions include separate contractual negotiations in conjunction with its sub-contractor Benham, who are responsible for all project engineering, procurement, and construction oversight. The final approval of the agreement is predicated on CCTC receiving the final project approval for its Inner Mongolia joint venture agreement.
On December 18, 2009, the company signed an exclusive Technology Licensing Agreement (TLA) with Ink Global Consulting for the deployment of CCTC’s technology in India. The TLA provided for the funding and construction of clean coal facilities for an increasing production capacity of up to 100 million tons annually for a period of 20 years.
This would represent some $100,000m in licensing fees, plus $200m per annum in royalties to CCTC. The initial license fee was payable as of the end of January 2010, however, the parties continue to negotiate on amendments to the TLA.