Current Licensees And JV Partners
LWP has entered into a joint-venture (“JV”) with Hallmark Minerals Pvt Ltd to produce LWP fly-ash proppants.
The Hallmark manufacturing facility, which formerly made bauxite proppants, is located in Pune, Maharashtra, India.
Capacity: 12,000 tons per annum on a batch basis.
LWP owns 60% of the JV, Hallmark 40%.
LWP negotiated a US$1 million technology license fee for the State of Maharashtra in India, plus 10% of gross revenues in royalties.
The benefits to LWP of the Indian JV:
- Early cost-effective early entry to the ceramic proppants market;
- Allows LWP to establish precise sintering time required in a full scale commercial environment: LWP proppants require singular approx. 15-30 minutes sintering time at the pilot plant, whereas Hallmark bauxite proppants formerly required 2 hours sintering time:
- Acquired 60% interest in assets with replacement value of US$15 million for US$2 million:
- Commercial production allows showcasing to potential technology licensees:
- Opportunity to automate production to 24/7 operations to increase production up to 20,000 tons annually: