ACT president Steve Barrett told International Longwall News plans for the MoU have been in the works since late last year and will be formalised within 90 days.
Under the joint venture agreement the Chinese outfit would market and sell the ActiveMine system to a market ACT estimates could be as large as $US3 billion.
“China's massive underground coal mining sector represents the largest market opportunity in the world for our company," he noted of the MoU initiated by ACT board member Peiwei Ni.
“By working in partnership with a large and long-established mining group, we are well positioned to gain the full potential of this opportunity."
The new venture, which could target the country's 2500 large coal mines and more than 20,000 smaller operations typically privately held, also means the possibility for an ACT office there in the future, Bennett confirmed.
But for now, he said, “The joint venture will establish a local management team in China, and will leverage best practices pioneered by ACT in its US ActiveMine business."
ACT explained that it will finance and install a demonstration site in China that will serve as a sales tool as well as an outlet for the Chinese Government to review and certify the product, which will then be purchased by the supplier's undisclosed Chinese partner when the demonstration is complete.
“The Chinese group will assist ACT in its application to have ActiveMine certified as intrinsically safe by China's mine safety board," Barrett confirmed.
“This gives our company a huge advantage at a time when China is moving rapidly to improve safety in its coal mines."
ACT also confirmed that it is actively seeking to expand into other international regions.
“We are talking with potential customers in several countries," Barrett told ILN.
“We're particularly excited about this joint venture given that China is the world's largest market for mine communications and tracking systems. We're fortunate to be working with such a strong partner in order to make the most of this opportunity."
