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Rockwood Press Release
Rockwood begins expansion of Chemetall Foote lithium operation in Nevada
Silver Peak production expansion to be funded by 50%
matching grant from Department of Energy
Princeton, NJ USA (July 12, 2010) – Rockwood Holdings, Inc. (NYSE: ROC) has announced that its Chemetall Foote subsidiary has begun expansion of its lithium production operation in Silver Peak, Nevada. The project is funded in part by a $28.4 million grant from the U.S. Department of Energy to expand and upgrade the production of lithium materials for advanced transportation batteries.
The Chemetall Foote operation, which is the only operating domestic lithium resource in the US, extracts lithium salts by brine evaporation in the Clayton Valley. The brine is pumped from salt-rich aquifers beneath the desert and evaporated in large ponds on the desert surface. The concentrated brine is then pumped to a production plant at Silver Peak where it is converted into lithium carbonate, the basic raw material for lithium compounds.
The expansion activities include a well drilling program to begin in the next few months that will double the capacity of its lithium carbonate production. The Department of Energy grant is also being used to install a geothermal power plant which the company expects will make the operation self-sufficient for electric power. The company believes that the reduced energy costs will increase the global competitiveness of the operation and that the combination of solar and geothermal energy should supply more than 98% of the energy requirements at the site.
As of June 2010, 20 new jobs have been created either by Chemetall Foote or by contractors directly working on projects for the site. During the peak of construction in 2011 and 2012, the project will employ 50 additional people between the company and its contractors. At the conclusion of the project in 2013 the site will employ 50 people, doubling the number of employees in 2009. As previously announced, the project is part of a $56.8 million expansion of Rockwood’s lithium capabilities in the United States.
About Chemetall
Chemetall is the world's leading manufacturer of lithium-based compounds and an innovative developer of metal-based fine chemicals for use in specialty applications. Chemetall's lithium-based compounds are used in a variety of high growth applications, including base chemicals for numerous industries, drug intermediates, elastomers for car tires and rubber soles, lithium batteries, thermoplastic materials and high performance greases. Chemetall has lithium production facilities in the United States, Chile, Germany and Taiwan. For more information, please visit www.chemetall.com.
Chemetall is part of Rockwood Holdings, Inc., a leading global specialty chemicals and advanced materials company. Rockwood has a worldwide employee base of approximately 9,500 people and annual net sales of approximately $3 billion. The company focuses on global niche segments of the specialty chemicals, pigments and additives and advanced materials markets. For more information on Rockwood, please visit www.rocksp.com.
The information set forth in this press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 concerning the business, operations and financial condition of Rockwood Holdings, Inc. and its subsidiaries and affiliates ("Rockwood"). Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "predicts" and variations of such words or expressions are intended to identify forward-looking statements. Although Rockwood believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its expectations will be realized. "Forward-looking statements" consist of all non-historical information, including any statements referring to the prospects and future performance of Rockwood. Actual results could differ materially from those projected in Rockwood's forward-looking statements due to numerous known and unknown risks and uncertainties, including, among other things, the "Risk Factors" described in Rockwood's 2009 Form 10-K on file with the Securities and Exchange Commission. Rockwood does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.
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