NLC India Limited (NLCIL) and NMDC Limited signed a Memorandum of Understanding (MoU) with Environmental Clean Technologies Limited (ASX: ESI) (ECT or Company) for the largest-ever joint R&D collaboration between Australia and India. The signing of MoU and execution of the project agreement were carried out on 30th May, 2018 (Wednesday) in Canberra, Australia by Shri P. Selvakumar, Director/P&P and Shri V. Manoharan, General Manager/Centre for Applied Research & Development from NLCIL; Dr.N.K. Nanda, Director/Technical from NMDC Limited and Mr. Ashley Moore, CMD, ECT India in the presence of His Excellency, Dr A.M. Gondane, High Commissioner of India to Australia and representatives from the Australia India Business Council.

The project aims to jointly set up an integrated Coldry-Matmor pilot plant in India which will develop a low emission iron and steel process. The agreement sees the commencement of the next stage of development for ECT's two proprietary technologies, Matmor which is the world's first and only lignite (brown coal)-based primary iron making technology and Coldry, a unique, zero-emission, lignite upgrading technology capable of producing a solid fuel for use in power generation and industrial thermal applications Coldry solid fuel is significantly less CO2 intensive than lignite.

The project entails two phases, commencing with an AUD 35 million R&D phase funded by the Indian partners, which aims to scale-up ECT s Matmor and Coldry technologies to deliver an integrated pilot plant capable of producing ~2 tonnes of metal per hour. Following successful R&D outcomes, phase two involves commercial expansion, targeting an integrated steelmaking facility with a proposed capacity of 500,000 tonnes per annum and an estimated cost of AUD 300 million. The partners will then assess opportunities for global commercial expansion based on market assessment at that time.