Michael West has written several "hit" pieces on Geo2 over the last few months and he continues on in that vein. Clyde Owens of the Australian Joint Economic Development Corporation (impressive title, huh?) opened an office in Shenyang, China some five years? ago and advertised that he had established Chinese contacts who could provide sales contacts. This was the time when everyone was in a mad rush to get into China. Geo2 joined up with Clyde, unfortunately he had no sales leads and ran out of money. An agreement was entered into that took Clyde out of the arrangement and Geo2 took over his lease and Chinese employees.
Following Clyde's exit Geo2 entered into an arrangement with the Peoples Liberation Army to establish a joint venture to make and sell water filtration units. The article makes no comment about the flux in Chinese laws and the "new frontier" stuff that goes on China, the whole legal system went thru' radical changes. The PLA was forbidden to enter into private commercial transactions and the water contract went on hold (after the contract was entered into). Part of that contract group became the Shenyang Manufacturing Joint Venture which now manufactures stainless steel parts for oil water separators and has capacity to increase production for other technologies. (Geo2 has developed a database of Chinese laws and was the first foreign company to set up a joint venture where the foreign company controlled the books and held a 51% equity).
Poor Clyde has been running around since he voluntarily signed off on China making all types of claims damaging to Geo2. He even contacted me looking for bad stuff on Geo2 at one time. Both the ASX and regulatory authorities have been aware of the facts surrounding these transactions for years (I'm assuming Clyde has already contacted them on many past missions to cleanse the world of corporate corruption). This article is like mannah from heaven, if the regulators won't listen (after four years) then a half page in the Australian keeps the adrenilin pumping.
The article makes no mention of other Chinese developments other than the "ecologically evil" gold refinery that runs on cyanide. The writer again fails to understand the way Chinese business operates. They sold Geo2 a broken down, money loosing refinery that no-one wanted (do you seriously think that the Chinese will sell you their best assets on a first sale?). Geo2 took the refinery, cleaned it up, modernized it with some new equipment, expanded capacity, downsized the workforce, put them into hard hats and uniforms AND paid them CASH and some bonus payments AND started making money. Low gold prices have been a drag but the business is paying its way waiting for higher gold prices to increase capacity. This venture allowed Geo2 to establish good relations with the locals and move on to the next venture which is the trial/testing of the non-cyanide gold heap leach tests underway at Lian. Testing started last year and will continue this year. You need to go back several posts to read about the non-cyanide leach testing. Photos of the trial are on my website. West makes no mention of these "environmentally friendly" trials nor of the fact that Geo2 has orders for the sales of multiple units of various technologies envolved in the clean up of animal waste and commercial kitchen grease (am attempting to get some photos and will post on the website ASAP). The important point here is that Geo2 has started to penetrate a very large market with a HUGE demand for environmental clean-up from Geo2's still very small base (don't expect Mr. West to mention any of this in his hit piece, cannot have facts getting in the way of an agenda). Also conveniently forgot to mention all of the various grants and relationships established with various Australian governments for developing cutting edge and innovative technology especially the recent START Grant and construction of a plant to recycle CD's and DVD's in the USA.
West goes on to say that Geo2 is not an environmental remediation company at all!!! Funny, last time I was in Melbourne in January, I went around to visit the various facilities operated by Geo2 and saw marine oil water separators, land based oil water separators, IC-SEP liquid separators doing clean up work at Docklands, Cycoslakers. Maybe Mr. West could go around to the various facilities and continue to imagine that Geo2 is not an environmental technology company. He will get to meet some of the nicest and extremeley innovative people. People with real vision for the future (in one facility they were working on a new and very low cost way to extract solvents and an oil/water separator that could handle oily water contaminated with grit and grime). Maybe you could find his phone number and e-mail address? Photos at aircommunications.net |
