In December 2019, State Company for Mining Industries, which falls under the Ministry of Industry and Minerals awarded the tender to STC sal the Bentonite Plant located in Falluja Iraq. The contract involves rehabilitating; activating and management of the bentonite production plant for a 20 years duration. The parties signed the contract in early 2020 with the option to renew upon mutual agreement. The rehabilitation of the plant is currently underway and nearing completion. It is expected that production will commence in Q2 of 2023. The plant will benefit from the nearby bentonite quarry and available reserves of raw material, which are located approximately 400 km from the plant, enabling it to meet local demand.
The plant is the only one of its kind in Iraq and the Middle East capable of satisfying the local demand as well as export to neighboring countries. Samples of the bentonite produced by the plant using local quarrying have already been tested and approved by the Ministry of Oil and National Oil Companies. The quality and specifications of the manufactured Bentonite (API) exceed the minimal requirements in conformity with international standards, which is supported by the Iraqi Petroleum RandD Center.
In addition to bentonite, the factory produces calcium carbonate and barite. The licensing for barite production is currently being negotiated and will be added as an addendum to the present concession at a different facility in Basra.
The Minister of Industry oversees the trial operation of the bentonite activation plant in Anbar Governorate.