20 August 2004 17:25 [Source: ICIS news]
LONDON (CNI)--Aricom, a new London-based titanium dioxide (TiO2) group with its sights on the Russian and Chinese markets, said Friday that it will decide before the end of the year which of two locations will be used to build its first TiO2 production plant.
A site near the town of Tynda in the far eastern corner of Russia or a site in eastern Siberia are being considered as locations for a 50 000 tonne/year plant, Tom Swithenbank, Aricom’s British chief executive, told CNI. Swithenbank said it was planned to begin production by 2008.
The German engineering company Ferrostaal Agi has carried out the feasibility study on the proposed new plant. And Sachtleben, also from Germany, is providing technical advice.
Aricom, spun out of Peter Hambro Mining in 2003, has access to Russia’s Kuranakh titanium ore deposit in the Amur region through its 74% ownership of Olekminsky Rudnik (Olekma), which owns the mining licence.
Aricom released it first interim financial results on Thursday after listing on the Alternative Investment Market (Aim) of the London Stock Exchange in December last year.
The group said it had raised $7.7m (Euro6.2m) through the issue of ordinary shares during the period from its incorporation on 12 September 2003 until 30 June 2004. It made a loss of $1.97m for the period which equates to a loss per ordinary share of $0.03. However, it has in excess of $6m available funding, it said.
On 31 December last year, the group acquired 100% of Russian Titan Company (RTC) based in Cyprus and, through RTC, acquired 100% of Chemelt, a trading and distribution company for TiO2 based in Moscow and 74% of Olekminsky Rudnik.
Aricom's $1.97m loss in the period to 30 June was made on a turnover of $1.48m. The figures include Chemelt from the date of acquisition.
Swithenbank said: “The first half year following the admission of the company to Aim has been a period of rapid progress for the company. During this time, we have evaluated a number of options for the future direction of the group and are confident that our strategy will deliver a major advancement of Aricom’s TiO2 activities.
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