CoTec Holdings Dir. Tom Albanese shares his wisdom

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CoTec Holdings (TSX-v: CTH) / (OTCQB: CTHCF) is a clean-tech/mining company on steroids. It’s moving forward with access to three disruptive technologies. A lot more info can be found here & here & here. The most exciting segment at the moment is HyProMag USA, which remains on track to deliver a Bank Feasibility Study (“BFS“) by year-end.

The BFS will be an eye-opener. Management is pleased with the preliminary economics. HyProMag USA will utilize its core hydrogen processing of magnetic scrap (“HPMS“) technology + Inserma pre-processing techniques, to liberate Rare Earth Elements (“REEs“) from wind turbine & EV motors, hard disk drives, and other electrical devices.

Existing methods of recycling critical REEs from magnets are costly, inefficient, and energy-intensive, which is why less than 5% of REE magnets are currently recycled. HyProMag’s HPMS will be scaled up to produce 100s of tons of new magnets in the U.S. starting in 2H/26, ramping up in 2027, and eventually > 1,000 tons/yr.

Management will use the BFS to bolster numerous ongoing negotiations. Concurrently, HyProMag USA is working on securing federal government loans/free-money grants, U.S. State financial aid/tax incentives, and strategic partnerships for feed supply + recycled neodymium-iron-boron (“NdFeB”) magnet & alloy off-take agreements.

CoTec has a combined 60% economic interest in HyProMag USA plus a 20.6% stake in projects outside the U.S. The BFS is based on a hub-and-spoke model using three HPMS vessels (spokes) and one magnet manufacturing hub. Operating sites are being carefully considered in several states across the country.

The short video above explains HPMS quite nicely. HyProMag USA alone could be a company-maker, and CoTec has several other promising assets. Note: CoTec has an excellent corporate presentation.

INTERVIEW, non-exec. Director at CoTec Holdings, Tom Albanese

On October 14th I spent 90 minutes 1×1 with Tom Albanese, CEO of Rio Tinto plc from 2007 to 2013, and then CEO/Dir. of Vedanta Resources plc & Vedanta Ltd. He serves as lead independent Dir. of Nevada Copper Corp. and is a non-exec. Dir. of Franco-Nevada.

Previously, Mr. Albanese served on the boards of Ivanhoe Mines & Turquoise Hill Resources. He holds a Master of Science in Mining Engineering & Bachelor of Science in Mineral Economics. My interest in speaking with Tom was about his role as a non-exec. Dir. at CoTec Holdings.

CoTec has assembled a tremendous team. Mr. Albanese is one of five or six world-class execs, board members & advisors. See bios here & here. To say that Mr. Albanese is well-versed in all things mining would be a gross understatement.

He has over 40 years of experience in –> clean energy, copper, iron ore, coking coal, green steel, gold, aluminum, REE magnets, M&A, and tailings/waste reclamation. He has been on the cutting edge of mining technology for decades.

This is a man who’s been to China more than 50 times… The fact that he has been involved in tiny CoTec for nearly three years is telling because he’s a product of BIG companies.

Tom adds significant value by making important introductions, understanding numerous technologies, helping to negotiate deals & partnerships if needed, and talking with investors, regulators & politicians (he was in Washington D.C. last week). Please continue reading my interview with Mr. Albanese.

Tom, thank you for taking the time to meet with me. How did a BIG company person take a liking to tiny CoTec Holdings?

I’ve been a non-exec. director at CoTec for nearly three years. I knew CFO Braam Jonker, CEO Julian Treger & non-exec Chairman Lucio Genovese before I joined. I have immense respect for them and others on the team.

For me to join a board at this stage of my career, I need to have high conviction in the vision, the team, and the assets. CoTec allows me to keep abreast of the latest mining-related technologies and to weigh in whenever I can on technologies we’re working with, and new ones being evaluated.

Our team is interested in disruptive technologies, but not moonshots that need to be proven. We seek simple, low-cost, green, scalable technologies. We’ve looked at hundreds and have chosen three to work with so far. I honestly believe CoTec is in the right place at the right time with the right people.

Are there takeaways from being the CEO of Rio Tinto & then Vedanta that apply to your role at CoTec?

Yes, Rio Tinto was the first mining company to use autonomous trucks. It was 2008, the site was nicknamed ‘Australia’s Mine of the Future’. I was a big proponent of mining technology then, and still am. While living in India as CEO of Vedanta, I learned that tailings have value, for example in road construction.

At CoTec we aim to recycle and/or reclaim tailings & waste (of which there are 100s of billions of tonnes around the world). This is a win-win-win for communities & governments, investors, and users of critical materials including copper, iron ore & REEs.

Unlike conventional mines that operate for 15-25 years, we’re deploying technology solutions that can be used again & again for 50 or 100 years.

Given your extensive experience & network of contacts, do you think CoTec needs to bring in a strategic partner? 

That’s a question for the board, but I don’t think we need a partner at the corporate level. Perhaps partnering with expert groups on one or more of our segments might make sense. Often companies seek strategic partners that can write big checks.

I’m confident our CFO Braam Jonker & CEO Julian Treger can raise investment capital as needed. They have impressive track records & extensive contacts around the globe. I’m available for investor meetings as well.

In my travels & communications on behalf of CoTec meeting with government agencies & politicians in the U.S., it’s clear there’s a lot of funding available for clean-tech firms like CoTec. When I meet with shareholders & prospective investors, there’s a strong and growing interest in clean-tech.

Which of CoTec’s business segments are you most excited about?

Our REE magnet recycling segment is coming along and we think it can scale well. A Bank Feasibility Study (“BFS“) will be out this year. When I was in Washington D.C. last week I was struck by the bi-partisan interest and the enthusiasm for companies that can mitigate the West’s dependence on China for so many critical materials.

Last month CoTec made two announcements regarding the hydrogen processing of magnet scrap (“HPMS“) technology being advanced in our HyProMag USA segment where end-of-life REE magnets from disc drives & windmill motors are recycled into new magnets. HyProMag USA alone could be huge. Keep an eye out for the BFS.

Various collaborations in government & industry group activities are well underway. The two press releases contain key information on the status of HyProMag USA. HyProMag USA updates –> Sept. 24th PR / –> Sept. 3rd PR –> corporate presentation.

Our access to cold binding technology could be a game changer for iron ore pellets. Current pelletizing technologies are expensive, energy-intensive, and polluting. I’m very interested in this segment as it offers a practical solution to emerging green steel initiatives. Again, not a moonshot, simple, scalable, green, and low-cost.

During your time at Rio Tinto & Ivanhoe Mines, you became an expert in copper. What are your latest thoughts? 

I’m bullish. For years we’ve been hearing there will be a copper deficit. Yet, supply has managed to eke out modest gains year after year. We could be reaching an end to the ability of aging mines to crank out ever more tonnes.

I get asked about the incentive price needed to get major greenfield projects off the ground, I think it’s north of $5, maybe even $6/lb. Brownfield projects can move forward at lower prices, but mining projects require a lot of time, permitting, capital & mine engineering!

CoTec goes after already-mined material sitting in tailings & waste dumps. If done right, it’s cheaper, faster & greener than conventional mining. The opportunity is massive. There are physical & chemical considerations, but very low grades, like 0.15% Cu, become viable vs. twice that grade needed to mine near-surface Cu.

No one wants low-grade tailings, so CoTec can acquire or option them cheaply. Low cap-ex, low op-ex & in production in 3-5 years instead of 15-20 for a greenfield project, suggests the potential for high IRRs. We are actively looking to lock down copper assets.

What can you tell readers about the due diligence being done by CoTec on other technologies? Do any stand out as particularly exciting? 

We have a lot of due diligence going on across a wide range of technologies. One emerging area I find very interesting is graphite, but the field changes fast. Natural or Synthetic? Graphene? Graphite is used in cement and can be made by reusing waste oil products.

Graphite reduces the amount of cement needed in concrete, lowering the carbon footprint of cement production. It allows concrete to absorb & release heat more efficiently, reducing the need for heating & cooling, and improves the durability of concrete, extending lifespan & enhancing recyclability.

Thank you, Tom, you are a wealth of mining/technology information. I look forward to hearing about ongoing developments at CoTec Holdings! Readers are encouraged to spend a few minutes reviewing CoTec’s excellent corporate presentation.

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