Printer Friendly

MAJOR EXPANSION UNDERWAY FOR SRL/CRL TITANIUM DIOXIDE MINE

 DAYTON, Ohio, Jan. 5 /PRNewswire/ -- Nord Resources Corporation (NYSE: NRD) announced today in conjunction with Consolidated Rutile Limited (CRL) of Australia, its 50 percent partner in Sierra Rutile Limited (SRL), a continuation of its expansion program at SRL's West African mine site by the expenditure of approximately $72 million in the next five years. The decision to continue the expansion program was based upon the desire to improve competitiveness in the mineral marketplace and to increase shareholder return. The resulting increased volume will improve economies of scale which will reduce the per unit production cost. This will be accomplished by the installation of an additional dredge. In addition, a new, more cost efficient power house, necessary for additional energy requirements associated with this expansion, will be phased in over a several year span. The expansion will increase annual production by approximately 40,000 tons to 190,000 tons commencing in 1996 from the current average annual production rate of approximately 150,000 tons.
 Financing of this expansion will come from the balance of the development banks' $48 million loan facility and internal cash flow generated by SRL. The timing of this expansion is favorable as SRL and CRL anticipate increased demand for rutile in the near term.
 Dr. Edgar F. Cruft, chairman and CEO of Nord Resources, stated: "While production costs have been substantially reduced in recent years, further reductions in costs will be attained to meet our goal of becoming one of the world's lowest cost and highest quality TiO2 feedstock producers. The decision to expand the operation at this time was based on the desire to take advantage of the new cycle of increasing TiO2 demand."
 A new international marketing company has been formed to represent the titanium mineral products of both SRL and CRL. This new company, Titanium Minerals Marketing International (TMMI), will be headed by Richard L. Steinberger as CEO. In order to effectively perform his duties as CEO of TMMI which represents the interests of both CRL and SRL, Steinberger has resigned as vice chairman and a director of Nord Resources.
 Sierra Rutile Limited's managing director, J. Peter Davies, has joined Sierra Rutile Holdings, the holding company for both SRL and CRL, and has resigned as a board member of Nord Resources Corporation. Christopher Neal, CRL's designee to the Nord Resources Board, has also resigned from the board as CRL is no longer the holder of the Debenture which was redeemed by the CRL/SRL transaction.
 Nord Resources Corporation's 50 percent owned Sierra Rutile Limited is a major producer of natural rutile (a premium titanium dioxide mineral). Nord Resources Corporation is also a significant producer of kaolin and holds a 47 percent interest in Nord Pacific Limited (NASDAQ: NORPF), a company engaged in the exploration for and development of precious, strategic and base metals, particularly copper.
 -0- 1/5/94
 /CONTACT: Terence H. Lang, senior vice president-finance, or Susan Shahan, director of investor relations, of Nord Resources Corporation, 513-433-6307/
 (NRD)


CO: Nord Resources Corporation; Consolidated Rutile Limited; Sierra
 Rutile Limited; Titanium Minerals Marketing International ST: Ohio IN: MNG SU: PER


KL-CM -- CL002 -- 9217 01/05/94 09:17 EST
COPYRIGHT 1994 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1994 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 5, 1994
Words:524
Previous Article:NEW LIGHTING BOOKLET SHOWS CONSUMERSHOW TO LIGHT THEIR KITCHENS AND BATHS
Next Article:ACURA ANNOUNCES DEVELOPMENT AND PRODUCTION OF NEW AUTOMOBILE IN U.S.
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters