BONANZA, Utah, April 4, 2013 /PRNewswire/ -- American Gilsonite Company, Inc. ("American Gilsonite", or "AGC"), the world's major supplier of Gilsonite®, announced that it had completed Phase One of its capacity expansion initiative. In response to significant demand for its products, and to help ensure its reliability as a strategic supplier to its customers, AGC embarked on a multi-year mine development strategy aimed to increase annual production capacity across all Gilsonite ore types to satisfy growing customer demand.
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 & gas, inks and paints, foundry and asphalt industries.
Ted Stevens, President and Chief Executive Officer of American Gilsonite commented, "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."
The approximate $20 million initiative entailed capital expenditures directed towards opening new mines, exploring new mine development methods, as well as 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 Mr. Stevens. "As a result we have production capacity to satisfy customer demand, and are well positioned for the future."
"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."
About American Gilsonite Company (www.americangilsonite.com)
AGC operates as an industrial minerals company and is the world's primary miner and processor of uintaite, a variety of asphaltite, a specialty hydrocarbon which AGC markets to industrial customers under its registered trademark name "Gilsonite®". Gilsonite is a glossy, black, solid naturally occurring hydrocarbon similar in appearance to hard asphalt and is believed to be found in commercial quantities only in the Uinta Basin in northeastern Utah. Because of its unique chemical and physical properties, Gilsonite has been used in more than 160 products. The Company sells its products to customers in four primary markets: (i) oil and gas, (ii) inks and paints, (iii) foundry and (iv) asphalt. AGC is headquartered in Bonanza, Utah. AGC is a privately held, portfolio company of Palladium Equity Partners III, L.P.
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SOURCE American Gilsonite Company, Inc.