Thursday, June 5, 2014

Mabwe Minerals Inc. (MBMI) Uses Key Partnerships to Feed Oil & Gas Industry’s Strong Appetite for Barite

Known for its efficiency as a weighting agent, barite has unarguably earned its worth in the booming global oil and gas industry by enabling rig operators to prevent blowouts or shaft collapse during oil and gas drilling activities. Roughly 85% of recovered barite is used for this purpose, with the remainder going to the automotive, medical and paint additive sectors. As the owner of total mineral and metal rights to the Dodge Mine located in Zimbabwe, Mabwe Minerals is emerging as a commercial source of high-grade barite.

The Dodge Mine consists of a series of hydrothermal mountains representing more than 575 acres comprising multiple deposits of superior grade barite. These deposits are considered “world class” in quality due to their high percentage content of barium sulfate (BaSO4) with a specific gravity of 4.5 g/cm3. Due to the property’s large percentages of recoverable barite deposits, Mabwe Minerals has assembled a network of strategic industry partnerships to execute the capture, transport and distribution of barite.

The process starts with Mabwe Minerals’ Zimbabwe affiliate, which holds a 25% position in WGB Kinsey & Company, a mining and construction company in operation since 1955. Leveraging its long-standing knowledge of Zimbabwe’s resources and people, WGB Kinsey manages all aspects of the Dodge Mine, including production, infrastructure, safety and environmental compliance, as well as transport to and management of barite at the Shamva Rail Depot.

Next is the marketing and shipment of barite. Steinbock Minerals, which specializes in the worldwide distribution of industrial minerals and has cultivated an established barite customer base, takes the reins here as Mabwe Minerals’ global marketing, sales and distribution arm. Yasheya Limited, which specializes in the worldwide shipment of industrial minerals, is Mabwe Minerals’ shipment and delivery arm.

Mabwe Minerals’ partnership with PHI Commodities, the largest grain importer to Harare, Zimbabwe, out of the Port of Beira, Mozambique, provides Mabwe Minerals’ with exclusive rail wagon load rights from the Shamva Rail Depot direct to the port. PHI Commodities also provides Mabwe Minerals to establish alliances with the National Railways of Zimbabwe (NRZ) and the Mozambique Railway Authorities (CFM), who own the Port of Beira, and Cornelder, the port’s leaseholder.

Utilizing this strong blend of strategic partners, Mabwe Minerals has access to an established network of barite customers, as well as a 3 million ton supplier agreement with Baker Hughes. The company continues to leverage these alliances to support its mining and logistical operations, ultimately strengthening its growing regional and global reputation as a reliable, commercial source of barite.

For more information visit www.mabweminerals.com

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