Fastidious Cats Are $10 Million Export Target For Namibian Miner

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). A new sepiolite mine south of Gobabis in Namibia is targeting a $10 million slice of the world's cat litter market. Sepiolite is the most sought after of all clay minerals and is the most absorbent of all natural matter on earth. It will absorb up to three times its own weight in water without swelling.

The mine is operated by Afhold and made its first sales in the second quarter of this year. The mine will hit an initial production rate of 40,000 tons/year, which will be lifted to 100,000 tons/year when plant extensions have been completed. Three bodies of sepiolite have been located to date in the mining area and the known reserves of only one of these bodies' stands at over eight million tons. The mine is currently estimated to have a lifespan of 43 years, but with results yielded from ongoing exploration, it could last 100 years at a mining rate of 100,000 tons/year.

The clay is taken from an open pit by front-end loaders after removal of the overburden and does not require any extraction process after mining. It is taken by conveyor belt to a simple crusher and a range of screens to meet user requirements. In Spain, which at present is the source of 90% of the worlds supply, kilns are used for the drying process whereas in Namibia the outdoor African sun does the job.

The global market for the clay is rated at about $200 million a year, of which 70% is used for the convenience of cats, when they are not cleaning, preening, or lying around ignoring lesser beings. Animal feed takes a slice of the balance. Other niche markets include paint thickener, drilling mud, dry walling and ceiling boards, chemical spills, cosmetics, liquid clarifiers, filters, sound damping, and shotcrete. For some applications, high-grade beneficiated sepiolite sells at $1,000/ton. The Namibian deposit consists of very high grade clay and Afhold has excellent world market response in competition with the Spanish produced material. Some output will go to cats in neighboring South Africa where they have been just about tolerating rather common attapulgite and bentonite litter and they will not be told about the superior sepiolite until supplies are readily available.

Afhold, which is a public company with 300 shareholders, is planning to list on the Namibian stock exchange (NSX) (Windhoek). The company's processing subsidiary is classified as an Export Processing Zone which gives full tax exemption. Don't leave your money to your cat, rather absorb the benefits of a sepiolite investment.