“We are pleased with this infusion of capital, combined with the affirmation of our role in the increasingly important clean energy sector. To work with a partner such as Jindal Steel with such a significant presence in the ASEAN region is a tremendous opportunity,” said Robin Eves, director, president and CEO, Clean Coal Technologies. “We firmly believe that we will offer one of the most practical and effective clean energy solutions in the global marketplace and our agreements with major entities such as SAIC and Jindal Steel certainly bolster our leadership in this industry and our ability to bring other major players to the clean energy table going forward.”
According to the terms of the TLA, Clean Coal Technologies will receive an on-going royalty fee of $1 per metric ton on all coal processed from Jindal majority-owned mines in the ASEAN region, up to 4 million tons or $4 million per year with a waiver of additional royalty fees on further processed coal up to a total of 8 million tons per year. If coal processing increases above 8 million tons per year, the royalty will be reinstated and Parties have agreed to review the rate.
In addition to the royalty fee, Jindal will pay Clean Coal Technologies a one-time license fee of $750,000. The license fee will be paid in two installments as follows: a) $375,000 upon signing of a pilot plant construction contract and b) $375,000 upon the successful testing of Jindal’s Indonesian coal at the pilot plant.