Minerals Corporation begins production of low carbon cement in Shanghai
Minerals Corporation (ASX: MSC) has announced the commencement of regular production of its low carbon cement products in April 2010. This production will be at its joint venture plant in Shanghai.
The company says this is a low cost location and is also well situated to access competitive shipping to global ports. Over the course of 2009 various bulk samples have been sent out to target customers globally using expensive contracted-in blending services in Australia.
However, since the establishment of the MSC/DDW (Zhejiang Dadongwu Group Co.) Joint Venture relationship in Shanghai (with mutually owned intellectual property technology), the company has been conducting testwork on new improved products using Shanghai based additives.
For its first three customers, a tonnage of about 20,000 tonnes per annum of low carbon product is to be produced at Shanghai using kaolin concentrate already shipped to site, with further shipments of kaolin planned during the year as required. This will generate revenues of about A$3 million.
Once production commences, further customers, including previously ASX announced customer orders, totaling about A$12 million, will also be processed using the Shanghai facility.
The Shanghai plant has the capacity to manufacture concentrate that will produce between 1.5 to 2 million tonnes per annum of finished products (depending on product type), and the JV partners have agreed to increase this capacity as required.
DDW also have their own well established large customer network in China and Minerals Corporation expects to start selling to these customers after the initial three export customers mentioned above.
Minerals Corporation shares rose 60% to 7 cents in trading today.
Related news
- Regency Mines shares up on more positive Mambare results
- Escher Group wins largest contract to date; shares surge
- Chariot Oil & Gas completes 3D seismic survey in Namibia
- Peninsula Energy chairman talks to Proactive Investors in Stocktube Video
- Empire Energy Group hits oil production milestone in Appalachia
- Aminex and Solo Oil to carry out further analysis on Ntorya-1 well
- Angel Biotechnology shares surge as it reveals new contracts worth total of £4.5mln
