CER completes heat recovery system for nickel mine
China Energy Recovery has an order for three sets of waste heat recovery systems for a large nickel mine project in Papua New Guinea. The total contract value is approximately US$4.85 million and the corresponding revenue to be recognised in Q2 2009 would amount to roughly US$3.7 million.
China Enfi Engineering Corporation is the main contractor for the nickel mine project. CER has been a partner with Enfi for numerous projects of waste heat recovery systems in recent years.
"This new nickel mine project is a good example of adapting our technology into new and developing industries," said Mr. Qinghuan Wu, Chairman and CEO of China Energy Recovery.
These three sets of waste heat energy recovery systems are designed to generate approximately 215 tons of steam per hour in total. This is equivalent to a heat energy generation capacity of nearly 43MW, which would otherwise be required to produce the same amount of power, and consequently reduce roughly 247,000 tons of carbon dioxide emissions from the burning of that coal each year.
The contract value presented above includes a 17 percent value added tax ("VAT") and a retainage for product warranty purpose, which will be recognised as deferred revenue. VAT and the retainage are excluded for revenue recognition purpose for the current period according to US GAAP. The numbers presented represent values based on current exchange rates. Changes in the currency exchange rates would result in a commensurate change in contract value.
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