CALGARY, ALBERTA -- (Marketwire) -- 03/26/13 -- West Mountain Capital Corp. ("the Company" or "WMT") (TSX VENTURE: WMT) is providing the following corporate update on its business activities in China as well as guidance respecting its anticipated capital requirements and capital plans for the next two years, namely 2013 and 2014.
The Company has entered into a number of agreements that have positioned it for growth in China in the areas of contaminated soil treatment and the recovery of oil from oily sludge waste. A summary of these agreements follows.
-- Nanjing - An Agreement of Strategic Cooperation with the Nanjing Institute of Environmental Science (the "Nanjing Agreement") for the treatment of contaminated soil throughout China. Under this agreement the parties constructed a TPS soil treatment unit that was completed in June 2012 having an annual contaminated soil treatment capacity of 30,000 tonnes. The Company plans to increase its TPS soil treatment fleet in 2013 by fabricating additional TPS units to add 120,000 tonnes annually of soil treatment capacity. In 2014 the Company plans to fabricate additional TPS units to add a further 300,000 tonnes of annual treatment capacity. By 2015 the Company plans to have 450,000 tonnes of annual soil treatment capacity in China.-- Hangzhou - A subcontract with Hangzhou Dadi Environmental Co. Ltd. to treat 33,000 tonnes of pesticide-contaminated soil in Hangzhou, China as a commercial demonstration of the TPS technology. The treatment of the contaminated soil commenced in December 2012 using the first TPS unit constructed under the Nanjing Agreement. This TPS unit is presently processing under steady state conditions and regularly exceeds its rated daily treatment capacity by 10-15%. It is expected that the project will conclude on or about December 31, 2013. The revenue from this demonstration contract is approximately CDN$3.5 million. As this is a commercial demonstration contract revenues and margins will be less than normally expected for this type of project.-- Zhoushan - The Company is a 50:50 equity partner in a Sino-foreign joint venture company with Zhoushan Nahai Solid Waste Central Disposal Co. Ltd. ("Nahai") of Zhoushan, Zhejiang Province, China. The WMT-Nahai Joint Venture is designing, engineering, constructing and will operate an oily sludge waste recovery facility in Zhoushan, Zhejiang Province. This non-TPS facility will receive, process and recover oil from oily sludge waste generated from oil storage operations and oil tanker cleaning activities in that region. Construction of this facility is expected to be completed in Q3 2013 and will have an annual treatment capacity of 50,000 tonnes. At full capacity this facility has the potential to generate annual revenue of approximately US$15 million with 20% EBIT.-- Changqing - A 10-year subcontract agreement with Liaoning Huafu Environmental Engineering Co. Ltd. to construct and operate a hazardous industrial sludge treatment facility in Changqing, China. Construction of the equipment and facility is expected to begin early in Q2 2013 and be completed and commence operations before the end of 2013. The Changqing facility will employ TPS technology and have an annual treatment capacity of 15,000 tonnes. The subcontract contemplates a broadening of the scope of operations to include an additional six (6) locations. The annual revenue potential of this sub-contract, including the revenue from the additional locations, is approximately US$16 million with 25% EBIT.