Firering Strategic Minerals (AIM:FRG), an AIM-listed industrial minerals company building a lime production platform in Southern Africa, has exercised the final tranche of its option over Limeco Holdings, raising its interest in the Zambia-based operation from 41.7% to 45%.
The stake increase comes as Limeco steps up its production ramp-up near Lusaka, where Kiln 2 has averaged approximately 85 tonnes per day since 21 April, a 61% improvement over Kiln 1's discharge rate and a figure the company attributes to earlier modifications made to that unit.
To connect the gasifier to Kiln 3, quicklime production has been temporarily paused, though hydrated lime sales from existing inventory continue during the approximately two-week outage.
Hot commissioning of Kiln 3 is expected to begin in mid-July, at which point Kilns 1 and 2 will also restart.
Modifications to Kiln 4 are under way, with hot commissioning planned for the fourth quarter.
The company also commissioned an automated bagging system and a replacement material handling system for the hydration circuit, designed to lift output and efficiency.
Limeco's operation is underpinned by a 145.2 million tonne JORC-compliant limestone resource, with mining from the open pit expected to begin in the third quarter.
"With a largely fixed cost base, each additional kiln is expected to make a meaningful contribution to earnings," said Youval Rasin, chairman and interim chief executive.
