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(Sharecast News) - Iofina announced on Friday that it has signed an agreement with a new brine water supply partner to provide additional feedstock to its IO#11 iodine plant in Central Oklahoma.
The AIM-traded iodine producer said IO#11, which became operational in July 2025, would now be supplied by two independent brine partners.
The plant already had sufficient installed capacity to process the additional brine volumes and extract iodine from the new source.
Iofina said the additional brine supply was expected to increase crystalline iodine production at IO#11 by 45 to 65 metric tonnes a year once fully operational, representing an increase of around 50% in annual production at the site.
Under the agreement, Iofina would work with the new partner to build a pipeline system to transport brine water to IO#11 and return iodine-depleted brine to the partner's disposal site.
The project was expected to cost about $1.5m, which will be fully funded by Iofina, with the company anticipating a rapid payback.
Construction would mostly be managed by the new partner and is currently expected to be completed in the third quarter of 2026.
The board said the agreement represented an efficient growth opportunity, using existing assets and infrastructure while strengthening the long-term production profile of the Central Oklahoma facility.
President and chief executive Dr Tom Becker said the agreement increased the production potential of Iofina's most recently opened plant.
"By adding an additional brine water source to an existing facility with available capacity, we will be able to deliver incremental iodine production," he said.
Becker added that Iofina was optimising production at IO#11 while also constructing its first plant in the Permian Basin, as it sought to maximise value from its current operating footprint and deliver new iodine production growth.
At 1132 BST, shares in Iofina were up 8.24% at 46p.
Reporting by Josh White for Sharecast.com.
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