BioteQ`s Joint Venture to Build and Operate New Water Treatment Plant in China
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/05/12 -- BioteQ Environmental Technologies Inc. (TSX: BQE), a leader in the treatment of industrial wastewater, together with joint venture partner Jiangxi Copper Company (JCC), the largest copper mining company in China, have committed CDN$3.2 million to build an additional water treatment plant at the Dexing Mine site, located in south-eastern China. The joint venture partners will share equally in the capital costs of the plant and in the profits generated from operations. BioteQ's share of the capital cost is estimated to be $1.6 million, which will be funded from the existing cash reserves of the joint venture. Revenues from the operation of the new plant will be based on copper recovered, identical to the joint venture's existing copper recovery facility at Dexing.
During the plant execution process, BioteQ will contribute to the engineering design and will work with JCC personnel on the procurement of key process equipment. JCC will provide all permits and manage site construction. Staff from the existing joint venture will provide commissioning and operating services. Construction is slated to be completed and the plant in operation by July, 2013.
Jonathan Wilkinson, BioteQ's Chief Executive Officer stated, 'We are pleased to be working with Jiangxi Copper Company to address additional water treatment needs, meet environmental requirements, and maximize resource recovery at the Dexing site. We estimate that the new copper recovery plant will provide incremental recurring revenues of between $2.5 to $3.0 million on an annual basis for the joint venture partners based on current copper prices, of which $1.25 to $1.5 million would accrue to BioteQ. The project will provide a good return on capital for BioteQ. This new project builds on the strong working relationship that we have with Jiangxi Copper Company, and is further evidence of progress with regards to our new strategy.'
The new plant will apply BioteQ's patented ChemSulphide® process to selectively recover copper from mine drainage, using a design similar to the copper recovery plant built at the site in 2008. This plant will address the Dexing mine's need for increased water treatment capacity.
The plant will be designed to treat up to 24,000 cubic meters of water per day. Annually, it is expected to treat approximately 4.6 million cubic meters of water and remove approximately 900,000 pounds of copper from the environment, in a form that can be refined into useful products. The copper concentrate will be sold to Jiangxi Copper Company's refinery at market prices, less transportation and refining costs. The operating costs for the new plant are expected to be similar to the current operation, which has a production cost of approximately $1.50 per pound of copper recovered. The financial performance of the copper recovery plant can be impacted by copper price, the amount of copper dissolved in the water, and annual precipitation levels.
This is the fourth water treatment project between BioteQ and its joint venture partner, Jiangxi Copper Company (JCC). In 2006, BioteQ and JCC formed a joint venture to apply BioteQ's technology at JCC's mine sites. To date, the partners have designed, built, and operated three water treatment plants at the Dexing mine site, located near Dexing City in south-eastern China, including a copper recovery plant that applies BioteQ's ChemSulphide® process to remove approximately 1.7 million pounds of copper annually from the environment, a BioteQ designed HDS-lime treatment plant, and an ion exchange plant for recovery of cobalt and nickel. The joint venture projects have been recognized with several national and international awards for environmental performance and sustainability.
BioteQ Corporate Profile
BioteQ is an innovative clean technology leader in global industrial water treatment, serving the mining and energy markets. The company's proven technologies have been applied at sites around the world to recover dissolved metals and remove sulphate, producing clean water and eliminating residual waste. BioteQ is headquartered in Vancouver, Canada and trades on the TSX under the symbol BQE. Please visit our website at www.bioteq.ca for additional information.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Certain information contained herein may not be based on historical fact and therefore constitutes 'forward-looking information' under applicable Canadian securities legislation. This includes without limitation statements containing the words 'plan', 'expect', 'project', 'estimate', 'intend', 'believe', 'anticipate', 'may', 'will' and other similar words or expressions. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks, uncertainties and other factors that may cause actual events or results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the Company's dependence on key personnel and contracts, uncertainty with respect to the profitability of the Company's technologies, competition, technology risk, the Company's ability to protect its intellectual property and proprietary information, fluctuations in commodity prices, currency risk, environmental regulation and the Company's ability to manage growth and other factors described in the Company's filings with the Canadian securities regulators at www.sedar.com (including without limitation the factors described in the section entitled 'Risks and Uncertainties' in the Company's Annual Report for the year ended December 31, 2011 and the section entitled 'Risk Factors' in the Company's Annual Information Form for the year ended December 31, 2011). Given these risks and uncertainties, the reader is cautioned not to place undue reliance on forward-looking statements. All forward-looking information contained herein is based on management's current expectations and the Company undertakes no obligation to revise or update such forward-looking information to reflect subsequent events or circumstances, except as required by law.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.