Environmental Clean Technologies Limited (ASX:ESI) To Start Testing On Indonesian Coal

Melbourne, Mar 11, 2009 (ABN Newswire) - Environmental Clean Technologies Limited (ASX:ESI) has reached agreement with Indonesian coal mining company Ilthabi Bara Utama (IBU) to commence initial testing of low rank coal samples from its East Kalimantan mine for suitability for application of the Coldry process.

IBU controls over 3.3 billion tonnes of JORC (Joint Ore Reserves Committee) resources, which is expected to double upon further exploration, and has closed a US$135 million privately-arranged equity-linked note financing facility for mine development. The mine is currently producing up to 2m t.p.a. and plans to ramp up production to 10 to 15m t.p.a. over the next 24 months.

ECT Chief Executive Kos Galtos said that following completion of the necessary testing, a business case would be developed with a view to moving to a Heads of Agreement if all proved successful.

"IBU can provide sufficient coal supply to meet current and future coal requirements for a >10M t.p.a Coldry production plant. The opportunity to access such a large resource in Indonesia will provide the Coldry plant with a key footprint into the South East Asian Market where there are a large number of coal fired power stations and consequently a huge market for the final product.

"Subject to successful testing of IBU's coal, a Heads of Agreement will be our next step," he said.

IBU's Trevor Butcher said he was excited about ECT's Coldry technology and looked forward to a future together. IBU sees the opportunity to enter into an agreement to utilise a cleaner coal technology important in its development as a company with the goal to develop technology to make coal mining cleaner for the environment than it has been in the past.

"It is IBU's intention to enter into a joint venture partnership with ECT to construct a Coldry plant in East Kalimantan and to provide enough coal at an agreed price for at least a 10M t.p.a plant," he said. Testing on the first samples of coal, sent by IBU, will be carried out to enable development of an acceptable business model before moving to a Heads of Agreement.

PT Ilthabi Bara Utama operates as a coal mining company with offices based in Jakarta and Balikpapan. The company currently produces thermal coal for both export and domestic consumption. More information on IBU can be found on its website http://www.ibu-coal.co.id

About Environmental Clean Technologies Limited

Environmental Clean Technologies Limited is an Australia-based company. The Company is principally engaged in the research and development of dewatering and related technology. Its wholly owned subsidiaries include Asia Pacific Coal and Steel, and Enermode Pty Ltd.

Contact

Chief Executive Kos Galtos TEL: +61-3-9684-0888