PyroGenesis Canada Inc. has entered into a Memorandum of Understanding with one of the largest Japanese trading houses, which outlines the understanding of how the Parties will move forward towards a potential joint venture partnership for the purpose of developing DROSRITE™ tolling services globally.
A tolling service arrangement is one in which a smelter provides dross to a third party to process either on or off-site. The Agreement envisions moving forward with test cases to provide tolling services. These test cases would serve as a basis on which to determine, if, and how, the Parties would jointly provide tolling services on a global basis.
“Before the introduction of PyroGenesis’ patented DROSRITE™ system to the marketplace, options for on-site tolling with a salt-free, high recovery rate technology were extremely limited, if not nonexistent,” said Mr. Pierre Carabin, CTO and Chief Strategist of PyroGenesis. “The advent of DROSRITE™ opens up an alternative for aluminium producers looking to maximise recovery of metal, while using a technology that is compatible with their operations, avoiding altogether the risk of salt contamination.”
The Partner is one of the largest Japanese trading houses (Revenues: > Can$5.4 billion; Profit: > Can$2.0 billion; Assets: > Can$25 billion) with more than 400 subsidiaries and affiliates worldwide, and extensive relationships with smelters globally.
“Tolling is the ultimate recurring revenue stream for our DROSRITE™ business line. Teaming up with a large multi-national corporation, who has the experience and organisational depth required to execute this strategy, will help accelerate our time to market,” said Mr. P. Peter Pascali, President and CEO of PyroGenesis. “We know of no other process that can offer the same savings as the one we are offering the aluminium industry. Of note, in a separate industry, tolling steel slag on-site is a very profitable business model which has been the foundation on which several billion dollar blue-chip industrial companies were built. We intend to introduce this business model, with our Partner, to the aluminium industry, which, of note, is recognised as the steel industry’s ‘best practice’ for managing their slag.”
The Agreement announced today envisions the Parties eventually forming a JV to provide tolling services on a global basis.