A shortage of working capital caused by poor gallium markets has led to the closure of Musto Explorations’ Apex mine project near St. George, Utah. According to H. Lutz Klingmann, president, the company has been unable to sell the gallium production “at acceptable prices in July and August, 1987.” However, he does feel the longer-term outlook for gallium “remains promising.”
Technical problems also forced closure of the company’s germanium refinery. In this case, the carryover of fluorides from the leaching process into downstream operations caused extensive glassware corrosion, necessitating the shutdown.
Several capital projects are under way to increase over-all recoveries of both gallium and germanium and to reduce operating costs. “It is estimated that these will take approximately four months to complete,” he says. Mr Klingmann adds that Musto is trying to raise additional funds to reopen the plant and he notes that shareholders will be “advised of developments.”
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