Sodium cyanide producer curbs output due to "spiking gas prices"
Fumigants and biocides producer Draslovka has been forced to temporarily limit output of one of its key products due to spiking European gas and raw materials prices, the company said on March 30.
Draslovka's production plant in Kolin in the Czech Republic specialises in cyanide-based specialty and agricultural chemicals. It said it was forced to minimise sodium cyanide output as it had become "temporarily uneconomical" given current gas spot prices in light of Russia's actions in Ukraine.
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"The invasion in Ukraine exacerbated a market situation where prices were already near historic highs," Draslovka said.
Sodium cyanide is a crystalline compound strictly used for commercial applications due to its poisonous nature. It helps extract gold and silver from their mineral ores, as well as commercial fumigation, chemical manufacturing, gold extraction and electroplating.
Draslovka is expanding its sodium cyanide operation into North America. On December 1, it said it had acquired the mining chemicals division of Delaware-based Chemours Company for $521mn, opening up access to cheaper US raw materials and the attractive North American market.
While Draslovka looks to the US for market growth, sanctions imposed on Russian businesses have intensified the rise in European production costs. Draslovka said the cost of sodium cyanide production has climbed almost three times higher in the first three months of 2022.
Pavel Brůžek, CEO of Draslovka, said he wanted to reassure customers that his company remained committed to "seamless supply", despite the production bottleneck in Kolin.
" Draslovka recognizes the mining industry’s critical need for a reliable supply of sodium cyanide and we will continue working diligently to support our customers’ operations," he said. "We have a number of tools at our disposal to do so, including the Americas’ largest production facility and most robust distribution network."