Company Press Release
Largest Discovery of Kaolin in Over 40 Years by Utah Company
SALT LAKE CITY--(BUSINESS WIRE)--Sept. 9, 1998--Utah Clay Technology Inc. (OTC BB:UTCL), a mining and processing company of industrial minerals, announced the largest known discovery of kaolin, an industrial mineral, in over 40 years, according to Dennis S. Engh, president of Utah Clay Technology Inc.
The kaolin unearthed amounts to 7.7 million tons with a value of $953.7 million.
''We feel this discovery will greatly impact our industry since the quality of the kaolin produced by the Kaolin Belt has been greatly depleted,'' Engh said. ''And this is just the tip of the iceberg since the total reserves of hydrothermal kaolin are estimated to exceed 200 million tons.''
Kaolin, is an inert, plate-shaped mineral that is primarily used as filler and extender. It is used in over 600 products and applications ranging from paint to cable wire to paper and paper coatings. Fortune 500 companies such as DuPont, Merck, Proctor & Gamble, Shell Oil and General Motors are just some of the companies that use kaolin in products sold to consumers.
Engh also announced that Utah Clay has entered into negotiations with Dorfner Inc., a large German based industrial mineral company that could signal a potential joint venture between the two firms.
With over 2,000 business-to-business clients, Dorfner produces over 600,000 tons of industrial minerals per year. It produces over 250 products of kaolin, quartz and feldspar for the paper, plastics, paints, polishes and adhesives industries. They are headquartered in Hirshau, Germany.
The United States is the world's largest producer of kaolin at 10 million tons per year. According to industry statistics, the kaolin industry will generate approximately $2 billion in U.S. sales alone with an annual growth rate of 4%. Specialty markets such as fiberglass, cable wire, paint and plastics have growth rates in the range of 7%-15% per year.
This release is intended as a forward-looking statement within the meaning of the Private Securities Litigation Reform Act of 1995. The risks and uncertainties that may affect the operations, performance development and results of the company's business include but are not limited to (i) The ability to process kaolin in the future, (ii) Unexpected changes in the kaolin market, (iii) The success of the company's expansion and marketing strategies, (iv) Competition with the kaolin market, (v) The ability of the company to motivate and retain the services of its key personnel and hire additional qualified personnel to meet evolving staffing.
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I wonder if they had a NDA signed.
:-)
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