LONDON: Coaltech Sarl has signed an MOU with the Republic of Uzbekistan Ministry of Innovation and Development and the Uzbekistan Railway company for the development in Uzbekistan of a project for the processing of coal fines into coal pellets, with an initial estimated value of US$16 million.

CoalTech Sarl is a joint venture between Coaltech – a Clean invest Africa subsidiary and Luxembourg based fund management company, Creon Capital, to jointly develop opportunities in Russia and CIS.

Coaltech has developed an innovative agglomeration solution that converts coal fines waste deposits into combustible coal pellets via a proprietary technology, and it has signed a joint venture agreement with Luxembourg based fund management company Creon Capital to jointly develop opportunities in Russia and CIS.

CoalTech Sarl, is developing the CoalTech business opportunities in Russia and CIS, which account for roughly two thirds of the coal production in Eurasia, excluding China. Creon Capital invests in the joint project with its clean-tech Creon Energy Fund (Sicav-SIF). The Fund’s initiator, Creon Energy (Moscow) is responsible for project implementation regionally.

Coaltech sarl has reached a preliminary agreement with both the Ministry of Innovation and Development of the Republic of Uzbekistan and Uzbekistan Railways JSC for the development in Uzbekistan of a potential project for the processing of coal fines into coal pellets, with an initial estimated value of USD$16m. Coal extraction is one of the largest industries in Uzbekistan.

The project anticipates feasibility studies, development of technical specifications and joint development of a business plan including confirmation of local demand in addition to the provision by the parties of relevant technical assistance.

The parties have agreed that subject to successful outcome of this initial phase including a feasibility study that they shall enter into appropriate commercial long term supply and/or off take arrangements.

Filippo Fantechi, CEO of Clean Invest Africa Plc, stated that this signing of an MOU with the Ministry and the Uzbek railway company is a significant step in the further geographic expansion of Coaltech and represents an extremely large, long term opportunity for Coaltech if it comes to fruition.

This co-operation is the first output from the Luxembourg based joint venture targeting Russia and the former soviet countries, agreed with Creon Investments and as announced to the market on 18th July 2019.

Edited Kazim Raza