Grecian Magnesite to increase production capacity in Turkey before the end of 2024

Athens, Greece – June 21, 2023 -- Grecian Magnesite S.A., a leading manufacturer of magnesite and its compounds, has announced today that its Turkish wholly owned subsidiary, Akdeniz Mineral Kaynaklari AS (AMK), has signed an engineering, procurement and construction (EPC) contract for the erection of a new Rotary Kiln at its Kümbet plant, as part of a previously announced plan to expand calcination capacity.

The new rotary kiln will have a production capacity of >100 tpd Caustic Calcined Magnesia (CCM) (or ~70tpd Deadburned Magnesia), which will more than double the current annual production capacity to circa 50.000 metric tons of CCM. The kiln is comprised of three main components: a pre-heater, a rotary kiln, and an integrated cooler. The pre-heater uses the enthalpy of the kiln flue gases to pre-heat the raw material, leading to increased output and reduced fuel consumption.

The new kiln line, which will be funded from the company’s existing cash reserves and future operating cash flows, will be erected adjacent to the existing rotary kiln and commissioning is scheduled for the fourth quarter of 2024. The basic design of the Rotary kiln has been implemented in-house by the company's specialized engineering team which will undertake the overall project management.

This major expansion in installed capacity, supported by a sustainable and long-life resource base, guarantees operational flexibility and added value in quality, product availability, and security of supply both in short and long term. In addition, the expansion will enable Akdeniz to offer new, differentiated MgO products and raise the standards in the global market.

"This expansion will allow us to support the growing demand for our CCM products which continues to exceed supply," said Akin Bayazit, Commercial Manager of Akdeniz. "The immediate increase in capacity is our strategic goal to cover the needs of our global customers. We are excited to expand the production for our award-winning AK98 brand!"

Commenting on this strategic expansion, the CEO of Akdeniz, Muzaffer Bayazit, said: "This expansion is an exciting and necessary step to meet the increasing demand rapidly and facilitate the integration of our successful growth strategy. The 150% growth in calcination capacity is the final phase of an accelerated investment program of upstream and downstream capacity and capability improvements. The program involved intensive mining exploration and development of new – high quality, high mineralization - mining operations, new loading and hauling machinery, high-efficiency pre-beneficiation lines, state-of-the-art X-ray-based beneficiation processing, additional fine-milling and packing capacities, increased warehousing, and more. The planned expansion will further facilitate growth in key markets such as hydrometallurgy (Ni, Co, Cu, U precipitation), production of special magnesium compounds, marine desulfurization, paper bleaching, special feed/food additives, catalysts, and many more".