First overseas ActiveMine demo system to be installed this year as ACT
moves rapidly to exploit huge China market opportunity
TORONTO, June 11 /CNW/ - Active Control Technology Inc. (TSX-V:ACT) today
announced that it has signed a binding and exclusive partnership agreement to
sell ActiveMine(TM), the premier wireless communications and locating system
for mines, in China.
Under the agreement, ACT will ultimately form a cooperative joint venture
with two China-based partners - a mining technology developer that is a
wholly-owned subsidiary of one of China's major mining companies, and an
established provider of mining services to the country's coal mining industry.
China has the largest number of coal mines in the world and represents a
market opportunity of $3 billion, according to management's estimates. The
country is moving aggressively to improve underground coal mining safety and
increase mining output to meet its growing demand for coal: technologies like
ActiveMine, which provides both operating efficiencies and safety features
through 100% wireless Wi-Fi communications, are expected to play a major role.
"This is a watershed agreement for Active Control in building the
foundation to exploit what we believe is the largest opportunity for
ActiveMine sales in the world," said ACT President and CEO Steve Barrett.
"This venture builds upon our recent successes in the U.S. market, on a
potentially much larger scale."
The cooperative joint venture with ACT's China-based partners will be
finalized upon receiving Chinese Government certifications for ActiveMine. The
cooperative joint venture will be based on the agreement signed this week,
which also establishes a business plan for the first two years of operation.
This includes the installation of an ActiveMine demonstration system in China
later this year and the opening of a Beijing office.
The demonstration system will be installed in an underground longwall
mine owned by ACT's China partner, and located in Shanxi province. The mine,
which was visited last week by ACT President and CEO Steve Barrett and ACT
Director Peiwei Ni, will be used for tours by prospective customers and for
government certifications. The site's proximity to Beijing, where most of the
country's coal mining companies are headquartered, makes it ideal for these
The Beijing office will serve as Active Control's hub over the next 12
months to achieve key milestones in association with its Chinese partners:
- Undertake "mining", "intrinsically safe" and "functionality"
certifications of ActiveMine under Chinese government regulations;
- Plan, stage, install and support the demonstration site;
- Initiate introductory sales outreach to coal mining companies; and
- Pursue other sales opportunities with surface and non-coal mines
which do not require "intrinsically safe" certification for
The ActiveMine communications, data and tracking system enables monitoring
of production, personnel and equipment in all types of surface and underground
mining environments, including coal and base metal mines. The system is
- Operate on a 100 percent wireless Wi-Fi network backbone.
- Be less susceptible to water and mechanical damage of all sorts,
including rock fall.
- Use open-standards technology.
- Meet federal MINER Act requirements for wireless systems as
established in MSHA policies.
- Enable miners who become isolated underground to stay linked, even
when they are distant from one another and cut off from the outside
world - a capability made possible by the system's unique
- Provide four-day intrinsically safe battery back-up and power supply.
- Provide a wireless communications and data network above-ground,
linked seamlessly to underground networks.
About Active Control Technology
ACT designs and markets wireless network control and communication systems
for buildings and extreme environments. Located in Burlington, Ontario,
Canada, the company trades publicly on the TSX Venture Exchange under the
symbol ACT. For more information, visit the company's website at
We make wireless work.(TM)
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contains forward-looking statements that involve risks and uncertainties,
which may cause actual results to differ materially from the statements made.
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For further information:
For further information: Steve Barrett, President & C.E.O., Active
Control Technology Inc., Tel.: (905) 670-5500 ext. 202, Fax: (905) 592-9691,
Email: firstname.lastname@example.org, Website: www.activecontrol.com; Don
Hogarth, Hogarth Communications Inc., Tel.: (416) 565-8920, Email: