Gulf Resources Announces Temporary Suspension of Trial Production at its well in Sichuan Province
June 03 2019 - 8:30AM
Gulf Resources, Inc. (Nasdaq: GURE) ("Gulf Resources" or the
"Company"), a leading manufacturer of bromine, crude salt and
specialty chemical products in China today announced the temporary
suspension of trial production at its natural gas well in Daying
County, Sichuan Province, China in order to comply with new
environmental regulations being implemented in China.
On May 29th, 2019, the Company received an oral notice from the
government of Tianbao Town ,Daying County, Sichuan Province,
whereby the Company is required to obtain project approval for its
well located in Daying, including the whole natural gas and brine
water project, and approvals for safety production inspection,
environmental protection assessment, and to solve the related land
issue. Until these approvals have been received, the Company have
to temporarily halt trial production at its natural gas well in
Daying.
Management has started discussions with local governmental
officials about the oral notice. We believe that the process
that is now occurring to us in Sichuan Province is similar to the
process that is occurring in Shandong Province. However, in this
Sichuan case, management expects the process to be shorter and
easier to accomplish .
While many of our factories in Shandong were old and most
of them were located near populous centers, all of our
machinery in Sichuan is new. From the beginning of the project, the
Company has been working closely with the Daying local governments
to ensure the project and the equipment satisfy local requirements.
In addition, the Daying well is located at a rural and mountainous
area.
The Company does not believe it will encounter serious problems
in meeting the new governmental requirements. It expects that this
process could take approximately three months. At this time, the
Company cannot estimate potential costs in association with the
compliance process.
Until these approvals have been obtained, the Company will not
expect to apply for additional drilling permits. However, the
Company believes it remains highly committed to its Sichuan
project.
About Gulf Resources, Inc.Gulf Resources, Inc.
operates through three wholly-owned subsidiaries, Shouguang City
Haoyuan Chemical Company Limited ("SCHC"), Shouguang Yuxin Chemical
Industry Co., Limited ("SYCI"), and Daying County Haoyuan Chemical
Company Limited (“DCHC”). The company believes that it is one of
the largest producers of bromine in China. Elemental Bromine is
used to manufacture a wide variety of compounds utilized in
industry and agriculture. Through SYCI, the Company manufactures
chemical products utilized in a variety of applications, including
oil and gas field explorations and papermaking chemical agents, and
materials for human and animal antibiotics. DCHC was established to
further explore and develop natural gas and brine resources
(including bromine and crude salt) in China. For more information,
visit www.gulfresourcesinc.com.
Forward-Looking StatementsCertain statements in
this news release contain forward-looking information about Gulf
Resources and its subsidiaries business and products within the
meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6
under the Securities Exchange Act of 1934, and are subject to the
safe harbor created by those rules. The actual results may differ
materially depending on a number of risk factors including, but not
limited to, the general economic and business conditions in the
PRC, future product development and production capabilities,
shipments to end customers, market acceptance of new and existing
products, additional competition from existing and new competitors
for bromine and other oilfield and power production chemicals,
changes in technology, the ability to make future bromine asset
purchases, and various other factors beyond its control. All
forward-looking statements are expressly qualified in their
entirety by this Cautionary Statement and the risks factors
detailed in the company's reports filed with the Securities and
Exchange Commission. Gulf Resources undertakes no duty to revise or
update any forward-looking statements to reflect events or
circumstances after the date of this release.CONTACT: Gulf
Resources, Inc.
Web: |
http://www.gulfresourcesinc.com |
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Director of Investor Relations |
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Helen Xu (Haiyan Xu) |
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beishengrong@vip.163.com |
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