Iofina, the London-listed iodine producer, has announced that it has signed an agreement with a new brine supply partner to construct its latest iodine plant. Although production has increased compared to the previous year, the company expects second-half production to be at the lower end of its forecasts.
New Plant in Western Oklahoma
The new IO10 plant will be located in western Oklahoma, in close proximity to the existing IO9 plant. It will be situated next to a key junction in its partner’s water gathering system. Iofina is currently working on the design elements to ensure maximum brine supply to the new site.
Funding and Timeline
The funding for the new plant will be through existing cash and loan facilities. Initial work is set to commence in the fourth quarter of this year.
Crystalline Iodide Production Increase
In the third quarter, crystalline iodide production rose to 156.9 metric tons from 143 tons in the previous year. This includes the first contribution from plant IO9.
Challenges in Production Ramp-Up
Although IO9 production is starting to increase output, Iofina has encountered difficulties in ramping up production at the plant, resulting in second-half production trending towards the lower end of its forecast range of 325-350 tons.
Strong Sales and Future Outlook
Iofina continues to experience strong sales, supported by robust iodine prices. Dr. Tom Becker, President and Chief Executive, stated that they are working closely with their partner to increase water volumes to the new plant and have started to see an increased output through October.