Iofina PLC (AIM:IOF, OTC:IOFNF) said it has executed all agreements with a new brine supply partner to construct its latest IOsorb iodine plant, IO#9, in Western Oklahoma.
Construction is expected to take six months, it added, and will take the number of its iodine production plants in operation to six.
Western Oklahoma is an area of significant oil and gas development with a consequent growing brine supply, making the site an excellent location, Iofina noted, and it is already looking at a possible second plant in the area.
Iofina’s technology isolates iodine from the brine stream produced in oil and gas production.
Once in operation, IO#9 will immediately contribute to cash flow, said the statement, with the full payback of costs expected in less than two years at production of crystalline iodine between 100 to 150 metric tonnes (MT) per annum.
Iofina also issued a brief trading statement in which it said production was 143MT of crystalline iodine in the three months to the end of September.
This is in line with expectations, it said, and puts it on track to produce 255-275 MT of crystalline iodine in the second half of 2022.
Tom Becker, chief executive, added: “With our current IOsorb facilities operating at expected rates, the addition of IO#9 will deliver a major step change in our overall iodine production.
"IO#9's construction will be underway shortly, whilst the relocating of the decommissioned IO#5 plant will help to both accelerate the project and keep costs down.”