(Alliance News) - Iofina PLC on Friday said that it has signed a deal with a new brine supply partner to construct its latest Iosorb iodine plant in Western Oklahoma.
Iofina is a Colorado, US-based manufacturing company that specializes in the production of iodine and the manufacture of speciality chemical derivatives. With operations in Kentucky and Oklahoma, Iofina is focused on constructing iodine extraction plants based on its Iosorb technology.
The plant, which is Iofina's tenth, will be located in the same core area as IO No9, adjacent to a key junction in a partner's water-gathering system.
According to Iofina, the site is an "excellent" location for the new plant, which will use Iosorb technology to isolate iodine from the iodine-rich brine stream.
The firm is already working with its new partner on the design elements to deliver the maximum brine at the new site. It said the plant would be financed through its existing cash and loan facilities, and expects work to begin in the fourth quarter of this year, with brine water flow near the mid-year point.
For the third quarter, Iofina reported 156.9 metric tonnes in the third quarter, up from 143 metric tonnes year-on-year.
However, it noted that the ramp up of IO No9 has been "more difficult than anticipated". While this has taken longer than expected, Iofina said it is now starting to see output at the site.
Subsequently, second half production is trending towards the lower end of its 325 metric tonnes to 350 metric tonnes guidance.
"We are delighted to have agreed on the terms to construct our newest iodine plant, IO No10, in Western Oklahoma, with a brand-new partner, which quickly follows the completion and switch on of IO No9. IO No10 will deliver a further step change in our iodine production and will be another milestone in our growth strategy, whilst planning and discussions for IO No11 continue to progress," said Chief Executive Officer Tom Becker.
Iofina shares were trading 1.0% lower at 24.00 pence each in London on Friday morning.
By Holly Beveridge, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Iofina (IOF)