Hey Metar, Been doing my reading, still feel this is worth a...

Hey Metar,

Been doing my reading, still feel this is worth a punt.. The industry is not as bad as you make out!!!!

O and thats a few people standing around the Swan river plant doing nothing.. I wonder what they do... just hang out and look at the whole in the ground?

Section: Business, pg. 40


IMERYS, one of the world's biggest china clay producers, has become the latest
French conglomerate to wield the axe over its British workforce.

An expected 800 jobs will be lost at Imerys's operations in Cornwall and Devon
-a severe blow to the local industry. Imerys's operations in Britain focus on
the production of kaolin, otherwise known as china clay, which is a key
ingredient in turning paper glossy.

The French company said yesterday that "the competitiveness of the UK kaolin
platform has been drastically impaired" by soaring global energy costs.
Instead, Imerys will expand its kaolin operations in Brazil.

The job cuts are another bitter blow for Britain's labour force -earlier this
year France Telecom, the owner of the Orange mobile phone brand, said it would
cut 2,000 jobs in the UK. Peugeot is closing its Ryton plant near Coventry with
the loss of 2,300 jobs.

The Cornwall division of the Transport & General Workers Union described
Imerys's proposed job cuts, which will take effect over the coming year, as a
"huge blow" to the South West. A spokeswoman said: "There is no way we are
accepting this at face value because there is far too much at stake."

Imerys has 2,300 staff in Britain and will continue to produce paper-filler
kaolins in Cornwall. The company said it needed to close the paper coating
grades plant in Cornwall and its hydrous kaolin operation in Devon to "ensure
the future" of its UK operations.

Imerys has not disclosed the amount of restructuring charges that will result
from the plant closures, but said it was investing Pounds 25 million in its
remaining Cornwall facilities.

China clay, used in the ceramic and paper industries, is a major part of the
economy in Cornwall. About 2,200 people are directly employed in the industry
in the South West, according to a British Geological Survey report.

Imerys had been gradually reducing its workforce in Cornwall, moving 300 jobs
to Brazil in 2002. Yesterday's announcement raised fears of yet more Imerys job
cuts.

The company employs 15,934 people at 250 sites in 43 countries. Last year it
reported revenues of Euro 3 billion (Pounds 2.1 billion) and an after-tax
profit of Euro 309 million.

The company's products are derived from minerals such as kaolin and used in
porcelain, tiles, paint, glass and paper.

Copyright (C) The Times, 2006
Edition: 1 - State
Section: Finance, pg. 029

PROPHECY

OVER the past two years, mineral sands group Minerals Corporation
has been plagued by problems with commissioning its kaolin plant
at Skardon River in North Queensland.

We believe most of these problems are now behind it.

The plant needs to about 4000 tonnes of output a month to break even,
and MSC has firm orders for February and March of 2000 tonnes.

With the plant infrastructure now performing, we believe that MSC
is on track to pass the breakeven point and to achieve positive cash
flow at Skardon by June.

For some time, investors have been uncomfortable with MSC's cash burn
rate, which was financed by issuing new equity. However we believe
this will no longer be a hurdle.

Last year management made considerable progress in widening the customer
base and improving distribution to key markets.

MSC recently confirmed Port Moresby in Papua New Guinea as the central
distribution hub, from which kaolin exports can be shipped to
key markets all over the world for a comparatively low cost. We
believe this will in turn further enhance Skardon River's commercial
viability.

On the corporate front, the foundations are now in place for a listing
on the London AIM stock exchange in 2005, which we believe will
be well received by UK investors.

MSC also announced the appointment of Jeff Harrison as CEO of the
newly formed subsidiary, Australian China Clays. Mr Harrison has
over 20 years experience in the kaolin industry, which is another
positive for the stock.

Copyright 2005 / The Daily Telegraph




Swan ups kaolin output.
112 words
22 November 2006
Asian Ceramics
39
English
(c) 2006 Elsevier Engineering Information www.ei.org
The Swan River Kaolin pilot plant in Australia's Avon Industrial Park is expanding production by adopting three shifts effective Nov 2006. The number of employees has also gone up to 12. Productivity has increased by roughly 10-15% due to the installation of a new filter cloth in the production of finished kaolin products. Meanwhile, a planned full-sized plant will be constructed at the industrial park when the company secures firm commitments from buyers of finished kaolin products. The proposed plant will have an output capacity of 200,000 tonnes/y of kaolin, and a life of at least 300 years.
Asian Ceramics
Document ASIANC0020061208e2bm00002

Increases in prices by 4-8% per ton

The article reports on the potential impact of the reduction in demand from the china clay industry on hauliers in Devon and Cornwall, England following the implementation of a rationalisation programme. The reorganisation can be attributed to the increase in energy cost. MMC Group manager Steve Cudmore believes that the fleet of Imerys will be affected by the programme. Imerys decided to transfer some of its clay production to Brazil.