24th Feb 2014 13:15
LONDON (Alliance News) - Tricor PLC Monday said production at Tricor Minerals Pte Ltd's iron sand plant has been significantly below its expected production capacity.
The investment company, with iron sand trading operations in the Philippines, said Tricor Minerals believes that the low production could be due to design flaws in the plant and is therefore in the process of reviewing the site with consultants.
The company said Tricor Minerals has now stopped iron sand production for the time being and it is not known yet when the plant will be in production again.
Iron sand contains a high concentration of iron ore, and is used in the production of steel.
Tricor is an AIM-listed holding company. The iron sand plant is run by Tricor Minerals, a Singapore-based venture of which Tricor owns 72%. It also has environmental and resources trading units.
The company started commercial production of iron sand at the site in December 2013 and said at the time that it expects to sell its first shipment by the end of February.
The newly commissioned plant at the Porac site in the Philippines was expected to have an annual production capacity of about 200,000 metric tonnes. The first shipment was to be sold to KGGD Pte Ltd, the Malaysian company with whichTricor signed a five-year supply deal in 2013.
The company also said its 100%-owned Tricor Environmental Pte Ltd has sold 319,353 metric tonnes and 345,541 metric tonnes of sand in the December and January, respectively, in line with expectations.
The company said that Tricor Environmental will continue to increase its sand operations as fast as it can.
Tricor shares were up 4.4% to 6.00 pence Monday
By Tom McIvor; [email protected]; @TomMcIvor1
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