Iofina plc (LON:IOF), which extracts iodine from brine water, said a cut in supply to one of its plants, IO#3, will only have a marginal impact on overall production from its facilities.
It sources the raw material from the onshore oil and gas producers in the US. One of its partners said volumes of salt water would be reduced.
Iofina said it is looking at “alternative brine delivery options”.
Overall, the company expects to produce 215-230 metric tonnes of crystalline iodine in the first half of the year.
''The reduction in available brine at IO#3 is likely to provide opportunities for us to source an alternative brine supply at the current location or it will accelerate our plans for a new iodine production location,” said chief executive Tom Becker.
“Execution of plans to produce iodine at a new location would lead to increased iodine output rates versus the company's production rate at the end of 2016, and reduce the company's overall iodine production costs.”