Integrated rare earths processor Great Western Minerals Group (CVE:GWG)(OTCQX:GWMGF) said Monday that its unit Less Common Metals Limited has signed the contract for the purchase of a second rare earth strip cast furnace.
The new strip cast furnace features similar design and output capacity as the first strip cast furnace unit purchased by LCM in
2011 and commissioned in January 2012.
purchase agreement stipulates that the furnace will be shipped from
China prior to the end of November 2012 at which time it will be
installed at LCM by a team of engineers comprised of our own technical
staff and personnel from the furnace manufacturer," LCM managing
director Ian Higgins said.
"The manufacturer was extremely
complimentary about the level of technical competence and engineering
support from LCM during the installation of the first furnace. The
second strip cast furnace will increase the total production capacity of
LCM to approximately 2,000 tonnes per annum of rare earth alloys."
Western Minerals' president and chief executive officer Jim Engdahl
said: "GWMG remains committed to the capacity expansion of LCM in
response to demonstrated industry demand. Twenty years of experience in
the rare earth alloy industry on the part of LCM has meant a smooth
transition in adding to our broad range of melting and reduction
"That experience, combined with the planned output of
rare earth materials from our Company's Steenkampskraal operation, will
enable GWMG to ramp up quickly in response to demand growth on the part
of our global customer base."