Planned Industrial Scale Test
22.03.2011
SUNKAR RESOURCES PLC
("Sunkar" or the "Company")
Planned Industrial Scale Test
Sunkar Resources plc (AIM:SKR) announces that the Company, its subsidiary, Temir Service LLP ("Temir"), and Open Joint Stock Company "Meleuzovskie Mineralnye Udobreniya" ("MMU") intend to test the conversion of Chilisai phosphorite concentrate into phosphoric acid and subsequently the production of compound fertilizers on an industrial scale. Sunkar and MMU plan to run the test before the end of H1 2011. The test is expected to consume more than 5 thousand tonnes of Chilisai phosphorite concentrate which will be shipped to MMU on commercial terms.
The primary objective of the test is the production of phosphoric acid using the main phosphoric acid production unit of MMU. One of the target compound fertilizers will be mono-ammonium phosphate (MAP).
Subject to the success of the test, Temir and MMU's main shareholder - OJSC Gazprom Neftekhim Salavat - would consider a commercial arrangement for the supply of Chilisai rock to MMU.
Serikjan Utegen, CEO of Sunkar, commented:
"It is a new stage of our Project to begin work with MMU on a bulk phosphoric acid generation test. Should the results be satisfactory, beyond the benefit of rock sales, we would also get the most definite confirmation of the amenability of Chilisai phosphate rock to produce phosphoric acid. This would be the ultimate confirmation of standard technology applicability to Chilisai rock and would certainly complement the results of the Feasibility Study being conducted now."
For further information please contact:
Sunkar Resources plc
Serikjan Utegen, CEO Tel: +44 20 7930 8678
Donald Sinclair, CFO
Ambrian Partners Limited
Richard Swindells Tel: +44 20 7634 4700
Matt Einhorn
Bankside Consultants
Simon Rothschild Tel: +44 20 7367 8888
Louise Mason
Editors Notes
Sunkar Resources plc
Sunkar Resources plc, through a wholly owned subsidiary Temir Service LLP, operates a phosphate rock mine in Aktobe Oblast, North West Kazakhstan. Temir Service LLP holds a Subsoil Use Contract to part of the Chilisai Phosphate Rock Deposit. The contract area is estimated to contain 800 Mt of phosphate ore.
Sunkar's strategy is to build a world class integrated ammoniated phosphate fertilizer plant with low operating costs. Sunkar's low cost base derives from its near surface phosphate rock deposit, access to sulphur from the nearby North Caspian oil and gas fields and regional long-term marginal priced gas.
OJSC Meleuzovskie Mineralnye Udobreniya
OJSC Meleuzovskie Mineralnye Udobreniya (Meleuz Mineral Fertilizers) has been founded as enterprise in 1977. Main production capacities had been introduced into operation by 1985, and include compound fertilizer production unit with capacity of 450 thousand tonnes per annum, stern precipitate unit - 120 thousand tpa, ammonium nitrate production unit - 450 thousand tpa, phosphoric acid unit - 300 thousand tpa of P2O5, nitric acid unit - 360 thousand tpa. Main products are animal feed supplement, granulated nitrogen, nitrogen-phosphate, and compound fertilizers, and their intermediate components. MMU ships its output to domestic market and for exports.
Currently MMU works on expansion of its production activities and considers extension of output products range.
Main shareholder of OJSC MMU is OJSC Gazprom Neftekhim Salavat, who is in turn a part of Gazprom Holding.