Gulf Industrials (ASX: GLF), formally Gulf Resources, is a resource development company that creates value for shareholders through the identification, acquisition and valorisation of resource focused projects, with a particular emphasis on regions where Gulf maintains relationships that provide a strategic advantage.
With a team of experienced engineering, project management, legal, financial and resource specialists, Gulf fosters and seeks to develop projects of major significance to both the company and the countries in which Gulf operates.
Gulf Resources: a burgeoning industrial minerals force in Africa
Sydney based, African focussed Gulf Resources (ASX: GLF) has secured the rights to a new industrial minerals project in Madagascar.
Gulf has secured the rights to the Soalara Limestone Project near Tulear in the southwest.
Soalara is a large, high quality limestone deposit demonstrating a chemical composition suitable for application in the cement, mineral processing and fertiliser industries.
The project covers an area of 12.5 square kilometres and the Company is currently undertaking due diligence and a scoping study with the intention to progress towards the option to purchase the project in its entirety by mid 2010.
Gulf believes Soalara can be developed and expanded into a world class limestone, lime and cement exporting project.
The company is assessing immediate offtake prospects on the completion of the purchase which includes an estimated 1.7 million tonne per annum limestone requirement for the Ambatovy Nickel Laterite Project in Tamatave, Madagascar; the supply of approximately two million tonnes of limestone to a large Asian Steel Group and exports into East Africa of up to one million tonne per annum primarily for cement works.
In addition to Soalara, the company is in the process of securing the rights for Gypsum and Graphite projects in Madagascar.
Strategically, these industrial minerals projects sit well with Gulf's near term producing Vermiculite project in Uganda.
As the rate of growth for industrial minerals demand in developing countries is considerably higher in developing countries than developed markets.
Demand for industrial minerals is consistent and long term in nature and less prone to cyclical swings. As well, many industrial minerals are essential raw materials for industrial and domestic products.
Meanwhile, Gulf's East African Vermiculite Project is undergoing post refurbishment and production is expected to recommence in April 2010. Near term production setting the company apart in this space.
Gulf is assessing designs for further expansion of the existing plant.
The project comprises one of the world’s largest reported vermiculite mineralisation zones and contains a JORC resource of 54.9 Mt of contained vermiculite at 26.7% 180_Vermiculite.
Further offtake agreement announcements can be expected shortly, in addition to the existing 5,000 tonne per annum agreement currently in place.
Discussions with a major investment bank regarding a mandate to assist with the debt financing to fund the expansion as well as other future African projects.
In line with the Company’s African focus, Gulf intends to introduce its shares on the main board of the Johannesburg Stock Exchange (JSE) via a secondary listing in the Mining sector.
Chairman Scott Reid said that listing Gulf on the JSE will represent a significant step in strengthening of the company's African focused industrial minerals strategy.
"Our vermiculite operation and expansion project in Uganda combined with our emerging exploration and development projects in Kenya and Madagascar are underpinned by strong technical and engineering support from South Africa and a listing on the JSE is a logical next step of progression for Gulf, he said.”
The company's management has plenty of experience in developing successful mineral projects including, acquiring and managing the initial development of Discovery Metals’ (ASX: DML) Boseto Copper Project in Botswana and the acquisition, initial financing and scoping of Andean Resources Ltd's (ASX: AND) Cerro Negro gold Project in Argentina.
