The success of the pilot plant is not only wonderful news for investors, which goes without saying of course, but also exciting for those who are concerned with the well-being of the environment. Mineworx is positioned to be a global leader in diesel catalytic converter recycling and precious metal extraction, and is one of few companies set to drastically reduce harmful waste, thereby improving the environment. This is no small achievement in such a large industry which is generally environmentally unfriendly.
Around twenty-seven million catalytic converters become available as scrap per annum, and less than 30% of the platinum and palladium is currently recovered from this. Until now, the only commercial method to recover platinum and palladium from these, is smelting. Smelting produces emissions deeply concerning from both air and water pollution perspectives, and in fact many smelters and refiners refuse to accept diesel catalytic converters due to the problems they create, including processing inefficiencies and possible safety issues, given the fact that trapped carbon is able to ignite. All in all, detrimental to the environment indeed.
With its proprietary, environmentally friendly method, Mineworx is extracting platinum and palladium with >90% projected yield, and now we know that its impressive, cleantech innovation works as expected.
Mineworx has succeeded in principle, in taking materials otherwise seriously hazardous, not to mention wasteful in terms of their precious metal content, out of the environment, and turning them into wealth and abundance. No small feat, and truly green. A perfect circular economy, certainly attractive in the current geopolitical climate.
Building the commercial plant
The design of the proposed commercial plant is modular, split into four modules. The first step towards commercialization is to build the first one.
The goal is to have this first module operational in the latter part of this year. Once it is up and running and optimized, and is in production creating cash-flow, then the company will scale up the operation and add the additional modules.
Module one is set to produce 2.5 tonnes of product per day, which will produce a high grade palladium/platinum mix which will ultimately be sold to a refinery in North America for final processing.
If any team is capable of pulling off this massive and exciting project, it’s the exceptionally solid Mineworx senior management team.
Mineworx CEO Greg Pendura has been quoted saying that he expects to hit a target of $100 million revenue per annum. This plant, the first module, is basically a quarter of the production capacity, and the expectation of $15-20 million is indeed possible.
The company has already started to lay out capital expenditure for this first module, while doing a $5 million raise via a rights offering. Some of the major shareholders have already signalled that they would participate.
The Rights Offering will be far less dilutive to shareholders and will enhance long term shareholder value compared to an equity financing at this stage. The funds raised in this offering will ensure the commencement of the first phase of commercial production.
The market
Internal combustion engines are, no doubt, here to stay for the foreseeable future. Even taking into account the current geopolitical climate of uncertainty, high oil prices and the general push to electric vehicles.
Aside from motor vehicles still being in high demand the world over, since we won’t have a situation where every household moves to electric vehicles and certainly not “overnight”, heavy-duty vehicles, stationary engines and machinery and such categories will always need catalytic converters. It is noteworthy that countries which have pushed an agenda to reduce coal use, oftentimes need to ramp up coal use when necessary.
In any event, it is worth noting that the long-term future for electric vehicles is debatable. They will rely on electricity, which does rely on coal. They also make for a difficult transition given the need for adequate and ample charging stations and an organized infrastructure to support such a project. The batteries required have a questionable environmental impact. The lithium-ion cells powering most electric vehicles rely on raw materials, such as cobalt and lithium. These elements have been linked to serious environmental and human rights concerns including child labour and “artisanal” mining. For example – severe illness for communities where cobalt is mined in the Democratic Republic of Congo, where as much as 70% of the world’s cobalt is mined. Lithium is mined in Australia and in Andean regions in South America, where large amounts of groundwater is used for this purpose, and negatively affects indigenous farmers and communities. The rare earth metals concentrated in China, used in rechargeable batteries, often have radioactive materials in them, which apparently can emit radioactive water and dust.
Detrimental to say the very least. Suffice it to say, diesel catalytic converters are here to stay at least in the medium term.
Every year, 85% of the world’s supply of palladium and 50% of the world’s supply of platinum are used for the development of catalytic converters. This means that around 12,600,000 ounces of platinum and palladium are required for this.
With Mineworx’ impressive ability to extract platinum and palladium with >90% projected yield, the market potential is clearly immense.
Investors and shareholders can probably rest assured that this next phase for Mineworx, the move from pilot to commercial scale, will be a resounding success.
