Great Western Minerals' LCM orders second rare earth strip cast furnace

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.

"The 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."

Great 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 furnaces.

"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."