Monday, May 12, 2014

Mabwe Minerals Inc. (MBMI) Well Positioned; Production of Oilfield Minerals to Increase as G7 Reduces Reliance on Russian Gas

The Energy Ministers of Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, and the EU Commissioner for Energy, following The Hague Declaration of G7 Leaders of March 24th, met in Rome on May 5th and 6th to discuss ways to strengthen collective energy security.

Russia’s annexation of Ukraine has led to European concerns on energy security, with G7 members calling for increased domestic production of oil and gas, which would boost demand for the industrial minerals needed to extract fossil fuels. Market intelligence organization, Industrial Minerals, expects this to boost production of oilfield minerals, such as barite, as the G7 pushes to reduce dependence on dependence on Russian oil gas supplies.

Barite’s principal use has been the manufacture of oil field drilling fluid, which more often called drilling mud. Drilling fluid is flushed into a bore hole during the drilling to clean drilled off cuttings from the bottom of well hole, flush those cuttings to the surface, cool and lubricate the drill bit during the actual drilling process, deposit a ‘filter cake’ layer on the well bore wall to prevent loss of the circulating fluid, and to support the walls of the well bore without damaging the formation.

The reason barite is favored over other minerals is that it’s chemically inert and neutral and so it doesn’t change the nature of other chemicals used. Barite is also physically neutral in that it is far less abrasive than other materials and does little to no damage on the drill bit itself, and is easier to dispose of in that it has little environmental impact.

The actions of the G7 energy ministers is set to benefit Mabwe Minerals, a natural resources and hard asset company engaged in the mining and commercial sales of industrial minerals with first focus on barite and limestone. The company’s Zimbabwe affiliate, Mabwe Minerals Zimbabwe Private Limited, owns 100% of the mineral & metal rights to Dodge Mine stretching 233 hectares across three mountains. The American Petroleum Institute (API) grade barite discovered at Dodge Mine addresses the worldwide shortages for barite while immediately serving development of the huge new oil discoveries off the coast of neighboring Mozambique.

For more information about Mabwe Minerals and the Dodge Mine project, visit www.mabweminerals.com

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