Revised Unit Cost Report (May 30, 2003)
Minergy Corporation respectfully submits this report to the Wisconsin Department of Natural Resources (the “Department”) containing the results of a Revised Unit Cost Study for a commercial-scale sediment melter facility. The activities leading to this report are in conjunction with the Glass Aggregate Feasibility Study under the agreement between Minergy and the Department dated September 21, 2000, (State of Wisconsin purchase order number
NMJ00001936), as amended under State of Wisconsin purchase order number NMB0000488 (the “Melter Demonstration Project”). The Unit Costs derived in this report reflect additional data relative to capital and operating costs that was derived by Minergy as part of its Supplemental Testing work scope (State of Wisconsin purchase order number NMC00000118). The scope of that work included characterizing sediment behavior in large-scale dryers, mixers, conveyors, bins, agglomerators, and other material handling devices. To perform these sediment characterizations, Minergy secured samples of Fox River sediment from 6 locations along the river, including twelve 55-gallon drums from Deposit W1. Minergy’s sampling indicated different sediment characteristics than the sediment that was utilized in the Melter Demonstration Project. This report has factored in the sediment variances, which resulted in modified process flows, mass/energy balances, and resultant capital and operating costs. This report is the result of a Cost Study and not an offer to construct a facility. The work performed within the scope of this study does not constitute detail engineering. Further detail engineering and design would improve the accuracy of the Cost Study results. Notwithstanding the Department’s or any other party’s desire to proceed with detail engineering or the development of a commercial scale facility, Minergy nonetheless reserves the right to make final determination on Minergy’s participation.
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