from advocate paper

14 June 2007 .....from....Avon Valley news......

New kaolin plant awaits share float


THE successful completion of the work of the Swan River Kaolin pilot plant at Avon Industrial Park has allowed an attractive business planto be prepared for the project to go into commercial production.
A full-scale production plant will be built financed by the proposed float of Australian China Clays Limited later this year and the pilot plant will close, its task completed.

The commercial plant is expected to cost around $37 million, way below the $100 million originally estimated.

Meanwhile the pilot plant will close by the end of June and the staff will temporarily transfer to parent company Minerals Corporation Limited's Skardon River kaolin mine and processing plant in far North Queensland.

In his report of June 7 to the Australian Stock Exchange, Minerals Corporation managing director Vic Alexander said" "The completion of this project work, together with our expanding Chinese export activities, adds substantial depth to our emerging china clay business."

The impending closure of the pilot plant has caused rumours to swirl that the whole project had been shelved.

But project manager Steve Downard, himself bound for Skardon River pending the cranking up of the commercial project said the company's report to the Stock Market was good news.

"We are saying that our product here has established solid markets and that it will fit in with the rest of the suite we are establishing," he said.

"Buyers are waiting for us to go into commerical production.

"The staff from here, including me, will be going to Skardon River to help with a long-run production issue, but we will be back.

"We have here a world-class resource which is in demand and we have concluded supply agreements with several customers."