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Highlights
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New Iodine Extraction Plant: Iofina PLC is set to expand operations in Oklahoma with the development of a new iodine extraction facility, IO#11, utilizing proprietary technology.
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Strategic Location: The plant will be located in Western Oklahoma, an area recognized for significant oil and gas activity, which aligns with the company's existing operations.
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Operational Timeline: The new facility is projected to become operational in 2025, with construction scheduled to commence in the fourth quarter of 2024.
Description
Iofina PLC {LSE:IOF} has announced plans to expand its operations by developing a new iodine extraction plant, designated IO#11, in Western Oklahoma. This site was chosen due to its proximity to Iofina's existing facilities and the region's robust oil and gas development, which presents a strategic advantage for sourcing brine.
The new facility will employ Iofina's proprietary IOsorb® technology to extract iodine from brine streams, a process designed to enhance efficiency and production rates. While the final capacity and associated costs of the plant are still under review, the company intends to finance the construction primarily through its cash reserves, with the option to utilize available loan facilities if necessary.
Construction of the IO#11 plant is set to begin in the fourth quarter of 2024, with specific timelines and project updates expected to be communicated as development progresses.
CEO Tom Becker expressed optimism regarding this expansion, stating, "We are pleased to announce that an agreement has been signed with our chosen brine water partner for our next plant, IO#11 in our newest core area in Oklahoma." This initiative aligns with Iofina's strategy of increasing iodine production and fostering long-term value for the company and its stakeholders. Over the past three years, Iofina has demonstrated a consistent growth trajectory in iodine production, reinforcing its commitment to operational excellence and market leadership in the iodine sector.
