Iodine producer Iofina said warned on first-half iodine production on expectations for a shortage of brine supply needed for iodine isolation at its plant IO#8. Options to provide IO#8 with other brine sources were being investigated but it was unclear if a viable solution would be found, the company said. It was now unlikely that the company would meet its first-half iodine production goals.
Iofina's brine supply partner for IO#8 was a saltwater disposal operator who sources brine from multiple hydrocarbon producers. On 1 May, the operator informed Iofina that oil and gas operators had shut-in or intend to shut-in wells due to reduced operating margins at current oil prices, the company said.
'Iofina believes this will materially affect the volumes of brine available for iodine isolation at IO#8,' it added. 'Currently, IO#8 is operating and receiving brine, however, the company expects the brine supply feeding IO#8 to significantly decline in the coming days.'
Iofina had four other iodine production plants located in its core area in NW Oklahoma, but Brine supplies to these four plants had not been affected.
At 9:02am: (LON:IOF) Iofina PLC share price was -5.77p at 13.23p