Tuesday, January 18, 2011 -
Toronto-listed Stans Energy Corporation announced last week that it plans to revive a once vital rare-earth metals production plant in Kyrgyzstan.
Stans Energy has announced that it will by a 100 percent stake in the plant near Kyrgyzstan’s Kutessay II rare earth metals mine as well as the plant’s private rail terminal for $5.5 million, according to businesswire.com.
The announcement comes nearly one year after Stans Energy entered into a purchase option agreement with the Kyrgyz Chemical and Metallurgical Plant (KCMP) to acquire the operation.
“The acquisition of KCMP RE Processing Plants and Rail Terminal is the culmination of many months of hard work and due diligence by Stans Energy and a variety of consulting parties,” Stans Energy quoted President and CEO Robert Mackay as saying on Thursday.
“Owning a processing facility is the next significant step in the implementation of our business plan to become a major developer and producer of HREEs (heavy rare earth elements).”
The plant once produced 80 percent of HREEs for the Soviet Union from the Kutessay II rare earth metals mine in the 30 years it operated before closing in 1991, resourceinvestingnews.com reported.
The announcement is significant for Kyrgyzstan in light of increased global rare earth metals demand resulting from China cutting its rare earth metals exports last year.
The plant’s rail station offers connections to China, Korea and Russia and includes two offices, a weigh station, two warehouses and a gantry crane. The station is located approximately 21 miles from the Kutessay mine.