I didnt really want to get into a heated discussion concerning Befesa, however I have conducted some research into their operations and thought I would summarise some key points that I had saved on my comp for those who are viewing this thread and want a quick snapshot of Befesa and their current operations.
Befesa has two primary divisions:
Industrial Waste Recycling - which includes steel waste recycling, Aluminium waste recycle and Industrial waste management.
Water - Engineering and construction (desalination plants)
Industrial Waste Recycling - Salt Slag, aluminium and steel and galvanisation waste recycling is conducted in: Spain, germany, France, Sweden and the UK. The industrial waste management business has a significant presence in Spain and Latin America.
In regard to their salt slag there is three plants in Germany (Hannover, Lunen and Toging) and one is Valladoild and wales.
Water Division - Important projects in China, India, Algeria, the Maghreb, the Middle East, the United States and Latin America.
"Befesa?s current growth strategy in this area contemplates organic growth in the aluminum recycling business in Central Europe, as well as international expansion in the salt slag business, thus promoting the company from its current status as European leader to a position of worldwide dominance."
Now I realise this is just a statement on their website, so nothing concrete can be taken from this. Like most companies worldwide they state their intention to grow in their current market (Europe) and expand internationally.
"In 2009, Befesa acquired three salt recovery plants in Germany, thus becoming Europe?s main salt slag management company. In addition, its technological knowledge will enable it to expand towards other geographical markets, such as the United States, the Persian Gulf and others."
Here they do note the US as a potnential market. But as per my previous comment above this is just a stated intention (nothing concrete).
They also mention SPL here:
"Also in 2009, a new process designed and patented by Befesa started running in the United Kingdom. The process aims to recover all the waste from used electrolytic cells, more commonly known as spent potlining (SPL), a hazardous waste generated by the primary aluminum industry. Each ton of aluminum produced generates around 24 kg of waste. Until now, it was only partially reused in some cases, with the remainder being dumped."
So in summary: Yes Befesa would like to expand into new markets (what company wouldnt), they do have a SPL processing technology and therefore they are a "competitor". Regardless of how good MHM's technology is or their cost of processing Salt Slag a competitor does exist in the global market.
Now this is not necessarily a problem because nearly every company and industry has competition. If MHM can process salt slag at a cheaper rate or has a more cost efficient technology then they hold the competitive advantage and therefore the threat of Befesa is significantly reduced. It is also important to note that we are talking about a global market so IMO there is the potential for a number of players. (obviously as a shareholder of MHM I believe MHM has the potential to capture a significant share of this market).
MHM Price at posting:
$1.21 Sentiment: LT Buy Disclosure: Held
(20min delay)