AL80 Update

ASX Release – 14 March 2012

• Supply contract with Impex Minerals Pty Ltd cancelled due to non-performance

•  Letter of Intent signed with Australia Bandfield Group for the supply of AL80 produced in Australia. 

MHM Metals Limited (ASX:MHM) has cancelled an exclusive supply 

contract with Impex Minerals Pty Ltd  for the offtake of AL80, 

MHM’s aluminium oxide product that is produced from salt cake 

recycling operations.

The contract has been cancelled following repeated nonperformance by 

Impex of key conditions precedent to the contract 

and repeated failure to deliver on timeframes.  On 23 February 

MHM announced that the first anticipated shipment date for AL80 

would be 5 March 2012.  This date was provided following written 

and verbal assurance by Impex that shipping would commence on 

this date.  Due to non-compliance by Impex, MHM has now cancelled 

the contract with Impex.

MHM has immediately proceeded with an alternative buyer of MHM’s 

AL80 product. MHM has signed a Letter of Intent with Australia Bandfield Group 

for the supply of all AL80 produced in Australia. 

Established in 1994, Bandfield has  exposure to  a range of 

businesses including ship broking, export and sales of mineral 

and agricultural products and advisory services in mining, port 

infrastructure and investment. The scope of  its business also 

includes advice and evaluation for Australian or Asian companies 

seeking joint venture  investments and providing shipping 

solutions for Australian companies seeking to reach Asian 

markets.

Preparations for the first shipment have already begun and 

Bandfield has advised that it will be delivering shipping 

containers to site within 10 days. 

The delay in shipment of AL80 is presently not impacting ongoing 

operations at MHM’s Geelong salt cake recycling facility.