TSX-V-listed Hudson has started production ramp-up at its wholly owned White Mountain anorthosite calcium feldspar mine, in Greenland.
Leading up to the ramp-up, the company completed the testing of all major equipment components, finding that all equipment was performing as expected, except for a secondary high pressure grinding roll crusher, which is running at 55% capacity.
This is owing to incorrect motors being delivered for the crusher during the construction phase, which the vendor has addressed, covering costs related to delivery and installation of the correct motors.
Hudson said some final parts were due to arrive next week, to enable the crusher to operate at its design capacity.
The motor replacement had delayed the commissioning schedule by about eight weeks and Hudson started reviewing working capital needs as a result.
Hudson president Jim Cambon noted the company was excited to start producing GreenSpar and preparing for the first shipment of product. “The interest in various markets for our product is excellent and increasing as we get close to loading our first shipment.”
Anorthosite is a source of feedstock to the high-end fiberglass industry, a source of alumina to supply aluminum smelters and is a source of filler material, which is a significant component of the plastic paints and paper industries.
Cambon pointed out that Hudson was in negotiations with several potential customers and expected to announce a new E-Glass customer and a new paints and coatings customer in 2019.
Further, Hudson has engaged a shipbroker to establish a shipper for the first shipments from Greenland to the US, with the company targeting the first shipment in March to Charleston, South Carolina, where Hudson had selected a port facility that can receive, warehouse and transload material to customers worldwide.
After a thorough review of port facilities in the US, Hudson had entered into a letter of intent (LoI) in January with Carver Maritime Charleston - a wholly owned subsidiary of Carver Companies - to provide services and facilities in Charleston for stevedoring, offloading, storage, bagging and trans-loading into containers and bulk material railcars and trucks.
The LoI is for one year after which time Hudson and Carver will look to establish a large tonnage storage facility based on a long-term contract. Carver will be responsible for the capital costs of the long-term facility.