Barite is a commercial mineral primarily used as a weighting agent for the oil and gas industry. In this use, barite “mud” is pumped into oil wells where the weight of the crushed barite/water/other materials flushes rocks chips away from the drilling head to prevent the explosive release of the oil and gas from the ground. More than 75 percent of barite consumption in the U.S. is used for this drilling application.
Mabwe Minerals, a publicly traded Raptor Resources Holdings (OTCQB: RRHI) subsidiary, seeks to meet its portion of barite demand as oil and gas production continues to flourish worldwide. The company is engaged in the logistics, mining and commercialization of barite and other minerals in Zimbabwe, Africa, and has full ownership of the mineral and metals rights for its primary operation, the Dodge Mine, which sits on a hydrothermal mountain range in Zimbabwe known for its abundance of superior barite deposits.
Mabwe Minerals in 2013 secured a 3 million-ton long-term master supply agreement for API grade barite with Baker Hughes, Inc. (BHI). To maximize production efficiency and meet terms of the agreement, Mabwe Minerals has formed several strategic partnerships with industry players that have developed customized equipment to capture, distribute, and transport a large share of salvageable bright-white, off-white, chemical, and API-grade barite.
In November 2013, Mabwe Mineral’s Zimbabwe affiliate received its first purchase order totaling 2,000 tons of barite. A month later, the affiliate received a second purchase order, for 10,000 metric tons, bringing the total tonnage purchased in the fourth quarter to 12,000 metric tons, exceeding earlier estimates.
Moving through the first quarter of 2014, Mabwe Minerals is focused on seeking out opportunities to benefit from its growing customer base and increasing global demand for barite, and has stated its intentions to finalize its Dodge Mine barite product specification sheets; initiate log qualification processes and procedures to support volume orders; commence small lot shipments to multiple customers; and increase shipments.
For more information about Mabwe Minerals and the Dodge Mine project, visit www.mabweminerals.com
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