May 25, 2010 - Gulf Resources, an East African focused industrial mineral developer, has reported the recommissioning of its Namekara vermiculite processing plant in Uganda and the commencement of commercial production.
In a statement Gulf Resources said the plant commissioning represents the start of production at the East African Vermiculite (EAV) Project and is a major milestone for the company as it rolls out its African focused industrial minerals strategy.
The company said commissioning of the processing plant follows a period of extensive and detailed design, re-engineering, customer trials and test work.
Scott Reid, chairman, said "with off take agreements in place covering the entire expected initial output from the Namekara processing plant, the company's attention will now focus on ramping up production in Uganda and the board is looking into the most cost effective ways of doing so."
"With vermiculite prices on the rise after a sluggish market in 2009, demand is on the increase and we feel we are ideally placed to take advantage of this and therefore provide further shareholder value," he added.
Gulf Resources said the successful start up of commercial production from the project reinforces Uganda's position as a developing resources destination and its government's commitment to supporting sustainable development in this important sector of the economy.
The plant has exceeded original expectations and is capable of yielding in excess of 15,000 tonnes per annum of raw, graded vermiculite products for international export and regional consumption.
As part of the recommissioning, the company said cost effective and productive equipment including 10 additional screens, a crusher, additional winnowers and new plant front end have been installed.
Gulf said, "based on its operational characteristics, further design work has commenced for additional facilities to be added in the future as part of the proposed production ramp up."
In a statement Gulf Resources said the plant commissioning represents the start of production at the East African Vermiculite (EAV) Project and is a major milestone for the company as it rolls out its African focused industrial minerals strategy.
The company said commissioning of the processing plant follows a period of extensive and detailed design, re-engineering, customer trials and test work.
Scott Reid, chairman, said "with off take agreements in place covering the entire expected initial output from the Namekara processing plant, the company's attention will now focus on ramping up production in Uganda and the board is looking into the most cost effective ways of doing so."
"With vermiculite prices on the rise after a sluggish market in 2009, demand is on the increase and we feel we are ideally placed to take advantage of this and therefore provide further shareholder value," he added.
Gulf Resources said the successful start up of commercial production from the project reinforces Uganda's position as a developing resources destination and its government's commitment to supporting sustainable development in this important sector of the economy.
The plant has exceeded original expectations and is capable of yielding in excess of 15,000 tonnes per annum of raw, graded vermiculite products for international export and regional consumption.
As part of the recommissioning, the company said cost effective and productive equipment including 10 additional screens, a crusher, additional winnowers and new plant front end have been installed.
Gulf said, "based on its operational characteristics, further design work has commenced for additional facilities to be added in the future as part of the proposed production ramp up."
