http://palmpelletfuel.blogspot.com/
Thu 02 Aug 2007
LONDON (SHARECAST) - Cleaner fuel group Libra Natural Resources is higher on plant upgrade news and confirmation it has completed the acquisition of all development rights associated with a proposed pellet plant in Canada.Libra plans to build a 60,000 metric ton (5,000MT per Month) plant in the West Kootenay region of British Colombia, with a project capital cost of around C$6m, to be funded by existing cash resources and debt.
Following receipt of requisite permits, the plant will take around six months to construct and enter commercial service during the first quarter of 2008.
In addition, a project is now well advanced to install a semi-automated bagging line at the company's existing wood pellet production facilities at Westbank.
"We anticipate that the line will be operational in September and will immediately enhance earnings for LNR," said the group.
Meanwhile, a project to expand pellet production capacity at the Princeton-Co Generation plant is on schedule for completion in the fourth quarter and will immediately enhance earnings.
"We estimate that these upgrade projects alone, will increase LNR's 2008 revenue by at least 15%, with a similar beneficial impact on the combined earnings from the two plants," added the firm.
