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Minerals Corp to start kaolin ops at year end

By BRIAN GOMEZ

MINERALS Corporation Ltd, which is well positioned to become a diversified minerals group, expects to commence a facility later this year to tranship kaolin from Port Moresby to markets around the world.
The company's chief executive, Vic Alexander, told The National once this shipping operation was performing smoothly a bagging plant would be set up, followed by a calcining plant that will upgrade the value of the kaolin.
Mr Alexander said Minerals Corporation would eventually transfer half its kaolin processing operations from its Skardon River mine and plant in North Queensland to its Port Moresby-based facility.
Over a two-year period it is expected to invest A$12 million (K29 million) here and to employ about 45 people.
About 60,000 tonnes of kaolin is expected to be transhipped from Port Moresby next year with the figure likely to rise to 175,000 tonnes in 2007.
During a visit to Port Moresby last week Mr Alexander also decided to set up a gold exploration company as part of its overall plan to shortly list on the Port Moresby Stock Exchange.
He also advised potential institutional investors of a A$10 million (K25.3 million) convertible note issue that will help fund expansion in Queensland and accelerate development at its Swan River kaolin project in Western Australia.
Minerals Corporation also has a joint venture in China which has been exporting calcined kaolin since December 2004 to markets in Asia, Europe and Australia.
Mr Alexander said current plans to invest US$60 million (K193.55 million) on a processing plant in China would make his company a leading producer of china clays in Asia and the Pacific.
A decision to become a strategic partner of Diatreme Resources has given it a stake in a highly attractive minerals sand prospect in the Eucla Basin in South Australia, where early exploration has shown an extremely high zircon content.
The company has a right to spend A$3 million (K7.3 million) over the next three years to earn a 40% stake in the Eucla project.
Mr Alexander said Diatreme, which will be listed shortly on the Australian Stock Exchange, also has a large base metals prospect in Queensland and has plans to set up a gold exploration company in China.