NLC India (NLCIL) and NMDC signed a Memorandum of Understanding (MoU) with Environmental Clean Technologies (ECT or Company) for the largest-ever joint R&D collaboration between Australia and India.

The project aims to jointly setup an integrated Coldry-Matmor pilot plant in India which will develop a low emission Iron and Steel process. The agreement sees the commencement of the next stage of development for ECT s two proprietary technologies, Matmor which is the world s first and only lignite (brown coal)-based primary iron making technology and Coldry, a unique, zero-emission, lignite upgrading technology capable of producing a solid fuel for use in power generation and Industrial thermal applications Coldry solid fuel is significantly less CO2 intensive
than lignite.

The project entails two phases, commencing with an AUD 35 million R&D phase funded by the Indian partners, which aims to scale-up ECT s Matmor and Coldry technologies to deliver an integrated pilot plant capable of producing ~2 tonnes of metal per hour. Following successful R&D outcomes, phase two involves commercial expansion, targeting an integrated steel making facility with a proposed capacity of 500,000 tonnes per annum and an estimated cost of AUD 300 million. The partners will then assess opportunities for global commercial expansion based on market assessment at that time.

P. Selvakumar, Director/P&P, NLCIL said that it was desired that lignite should also be used for alternative purposes. Coldry was a good technology for transforming lignite. He also said that this was an opportunity to work together with NMDC Ltd. to achieve iron ore reduction as well, adding higher value to the resource through new applications. Dr Nanda, Director (Technical) of NMDC added that if the pilot plant was successful, it could be taken to commercial sale. Indian High Commissioner to Australia, His Excellency, Dr. Gondane added his support to the collaboration, noting the importance of the project to addressing the challenges faced by India.

The MOU sets out the agreed terms for detailed sub-agreements. These include a Master Technology Licence Agreement, Tripartite Collaboration Agreement and NLCIL, NMDC and ECT Services Agreements. The parties are on track to deliver these agreements by the end of August and look forward to providing further updates as activities progress.

Shares of the company declined Rs 0.75, or 0.88%, to trade at Rs 84.45. The total volume of shares traded was 4,529 at the BSE (10.37 a.m., Thursday).