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Applied Minerals signs 2-year iron oxide supply deal with US cement manufacturer

Applied Minerals Inc. said Dec. 9 that it signed a definitive agreement with one of the largest cement manufacturers in the U.S. to supply up to 30,000 tons of crushed, unmilled iron oxide per year, for a period of two years.

Applied Minerals has started delivery of the iron oxide, which is a key ingredient in cement production.

"While our primary focus is still on the continued commercialization of our halloysite resource, the exploitation of our iron oxide resource will provide the company an additional source of cash flow. We are focused on developing other customers within the cement industry for our iron oxide product," Applied Minerals Mario Concha said.

The company aims to scale its production of iron oxide to between 100,000 tons and 200,000 tons annually. According to the most recent resource study, Applied Minerals' Dragon mine in Utah has the capacity to supply iron oxide at these levels for a minimum of 15 years.