November 09, 2011 by Editorial Staff
The company’s first overseas contract is for five years and has been structured as a tolling arrangement where a fixed price per tonne is charged to the customer, with MHM returning aluminium and flux to the client while retaining ownership of recovered aluminium oxide. The contract is subject to a satisfactory visit by the US aluminium company to MHM’s Australian operations.
Under the agreement, MHM is not allowed to reveal the name of the counterparty, the contract terms or the tonnages to be processed, but completion of this contract provides sufficient volume to begin with construction of the US plant, which will have a throughput of 200 000-250 000 tonnes per annum. The company is continuing to engage with a number of other firms with substantial salt slag and black dross volumes and aims to secure additional processing contracts in the near future.
Black dross is a by-product from reverberatory furnace operations and has a similar composition to salt slag - although often with a higher aluminium content. MHM recently appointed John Pugh as Director of Operations, North America, which subsequently led the company to investigate black dross recycling opportunities. The company says that black dross recycling could be a potentially substantial additional revenue generator, with minimal investment of extra resources as the recycling of salt slag and black dross go hand in hand.
MHM METALS LTD. LANDS FIRST CONTRACT IN U.S.
11/7/2011Australian company structures contract as tolling arrangement.
MHM Metals Ltd., based in Australia, has landed its first overseas processing contract for the supply of feedstock to MHM’s first U.S. salt slag and black dross processing facility. The five-year contract has been structured as a tolling arrangement, where a fixed price per metric ton is charged to the customer with MHM returning aluminum and flux to the customer while retaining ownership of recovered aluminum oxide.
MHM adds that details of the contract will remain confidential, and the company did not divulge either the counterparty or contract terms.
MHM's core business is associated with waste recycling technologies in the aluminum industry, with operations in both Australia and the United States.
According to MHM, the completion of the contract will provide enough volume for it to commence with U.S. plant construction. There will likely be a number of confidential contracts entered on these terms, and MHM intends to provide overall contracted supply volumes. The anticipated throughput of its first U.S. plant remains between 200,000-250,000 metric tons per year.
MHM continues to engage with a number of other companies with substantial salt slag and black dross volumes and management is working diligently to secure additional processing contracts in the near future.
MHM adds that details of the contract will remain confidential, and the company did not divulge either the counterparty or contract terms.
MHM's core business is associated with waste recycling technologies in the aluminum industry, with operations in both Australia and the United States.
According to MHM, the completion of the contract will provide enough volume for it to commence with U.S. plant construction. There will likely be a number of confidential contracts entered on these terms, and MHM intends to provide overall contracted supply volumes. The anticipated throughput of its first U.S. plant remains between 200,000-250,000 metric tons per year.
MHM continues to engage with a number of other companies with substantial salt slag and black dross volumes and management is working diligently to secure additional processing contracts in the near future.
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