AN ADDITIONAL AGREEMENT HAVE SIGNED

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Posted on 2017-02-17 08:19:10 CET.

The President of CAMCE, Ms Luo Yan and Bioref’s Executive Chairman, Mr Heikki Nivala, have signed an additional agreement during this visit.

The President of CAMCE and her management team have visited Finland during this last week and we have had the opportunity to visit both Helsinki and Kemijärvi. This week has been intense, but also very rewarding. I would like to express my gratitude to Ms Luo Yan and her work and efforts to support the progress of this investment project. She has been extensively engaged and is very now very familiar with the project. In our internal discussion, as well as in our discussions with our cooperation partners, President Luo Yan has raised many important points of relevance to all parties involved in the project.


In Minsk, on 11 October last year, China CAMC Engineering Co., Ltd. (CAMCE) and Boreal Bioref Ltd. have signed and agreed on the terms of intention agreements pertaining to the project’s engineering, procurement and construction, as well as its financing and other cooperation matters. The agreements set out the respective tasks and responsibilities of each party.


Both parties have worked together to achieve common goals, so as to enable an investment decision during 2017. We are well aware of that our goals are set high, but we are used to challenges, and dare I say; we even embrace them.
During the visit and our discussions with wood suppliers, we have particular attention to the availability of timber raw materials. I believe that, based on these detailed discussions, we now have a common view that there is sufficient raw materials and that the certainty of its timely delivery is very high.


As indicated in earlier announcements, we have a common view on the profitability of the project. The estimated financial performance of the operational activities of the bio-refinery are based on market conditions, the environmental impact assessment is conducted in line with Finnish and European standards and the envisaged equipment shall fulfil best available technology standards (BAT criteria).


During this visit, our cooperation has gotten increasingly close and we are delighted with our cooperation with CAMCE’s President and her team. They possess strong skills and highly relevant experience from similar projects and have the resources to bring this investment to its fruition.


AN IMPORTANT AGREEMENT HAS BEEN SIGNED TO BRING FORWARD THE PROJECT

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The President of CAMCE, Ms Luo Yan and Bioref’s Executive Chairman, Mr Heikki Nivala, have signed an additional agreement during this visit. Earlier this week both companies have signed a mutual exclusivity agreement, which further strengthens the commitments to the project and each other in the context of our cooperation in Finland. Furthermore, we have also agreed on the principles for the next steps in relation to the project’s feasibility assessment, project management and financing needs, so as to achieve a timely investment decision by the end of 2017.


During the coming month, we will aim to conduct interviews of suitable project management candidates and formally agree on the suitable next steps with respect to most efficiently finalising the feasibility studies, pre-engineering, the environmental licence application process, as well as the financing of these.

These agreements shall, furthermore, ensure that suitable resources are allocated from both sides to ensure the timely progress of the project. Thereby, CAMCE’s ability to invest in the project can also be accelerated. I would like to again extend my warmest thanks to CAMCE management for its continued commitment. We have made significant progress during this visit towards realising this project.


For more information:
Heikki Nivala
CEO, Chairman
Boreal Bioref Oy
+358 (0)40 5425353
heikki.nivala@borealbioref.fi

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