American Gilsonite Company, a major supplier of Gilsonite based in Bonanza, Utah, completed the first phase of its planned expansion in response to significant demand for its products, and to help ensure its reliability as a strategic supplier to its customers. AGC said it embarked on a multi-year mine development strategy aimed to increase annual production capacity across all Gilsonite ore types.
American Gilsonite and its predecessor companies have been mining Gilsonite, a non-hazardous, naturally occurring hydrocarbon resin found only in Eastern Utah since 1888. Gilsonite is used as a performance additive in the oil and gas, inks and paints, foundry and asphalt industries.
The approximate $20 million initiative included capital expenditures directed towards opening new mines, exploring new mine development methods, and continued investments in health and safety.
"We have opened three new mines in the past twelve months, and five more are under active development," said Ted Stevens, President and Chief Executive Officer of American Gilsonite. "As a result we have production capacity to satisfy customer demand, and are well positioned for the future."
"AGC's customers have come to rely on Gilsonite for its unique performance enhancing attributes. American Gilsonite is committed to being a reliable supplier to its customers, and we will continue to invest in mine development as our customers grow their businesses, “ added Stevens.
"We are thrilled by the achievements of the entire Bonanza operations team in successfully completing Phase One of our mine development initiative," said Stuart Green, Senior Vice President and Chief Operating Officer. "We believe our miners are the best in the world, and through their hard work and dedication, we have built a solid foundation to support the tremendous growth potential of our products."