Iofina successfully operates its latest Oklahoma plant

14th Jun 2023 14:29

(Sharecast News) - Iodine explorer and producer Iofina announced the successful operation of its IO#9 'IOsorb' plant on Wednesday, located in Oklahoma.

The AIM-traded firm said the plant had undergone hydrotesting, and was now actively processing brine water.

It described the development as a significant milestone for the company, as IO#9 became its sixth operational plant in Oklahoma.

Constructed in collaboration with a new partner, the plant was strategically situated in a core area with substantial oil and gas drilling activity.

By investing in IO#9, Iofina said it expected a swift return on investment, as the plant's production was expected to have a positive impact on the firm's overall production output.

Iofina said it was projecting a substantial increase of 100 to 150 metric tons (MT) per year in crystalline iodine production rates.

Currently, the plant was processing brine water, and in the near future it would start the concentration and isolation of iodine.

Over the coming weeks, production at the plant would be gradually scaled up, allowing for higher output levels.

"We are delighted to have IO#9 flowing brine water through our system, and meeting our end of second-quarter target for the start of production," said the company's president and chief executive officer, Dr Tom Becker.

"The new plant is on track to make a significant contribution to our total crystalline Iodine production through the second half of the year."

At 1404 BST, shares in Iofina were up 2.81% at 34.74p.

Reporting by Josh White for Sharecast.com.