A recently acquired boron mining venture in South America is expected to generate sales of US$3-4 million for nine months of operation this year, according to Boron Chemicals International (VSE) President John Campbell.
In April, the company started mining boron at several properties in Chile and Bolivia through a 50% owned operating company which also processes the raw material into trade-named products at its operating plant near Iquique, in northern Chile.
Sales either completed or in inventory at the port of Antofagasta for the first quarter of operations are estimated to total US$1.4 million.
The acquisition included the processing plant, laboratory facility and office building in Iquique, along with several mining properties in northern Chile and Bolivia.
Boron Chemicals, 40% owned by Trans America Industries (VSE), holds a 50% interest in a finance and marketing company in Barbados and has provided over $1 million in market financing working capital. The finance company will market Boron Chemicals’ product, as well as market product for a new producer in Bolivia.
Boron Chemicals intends to increase plant capacity in Chile, and has already completed a feasibility study for a new plant in Bolivia. The company notes that although no “North American-style” geological reserve program was carried out by former owners, the properties have sufficient indicated reserves to allow for an expansion of operations.
Boron is one of the most widely used industrial minerals because of its unique chemical attributes. The largest end-use is glass fiber insulation and glass fiber reinforcement.
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