AMSAT International, a specialist in advanced ceramics, has awarded a follow-on order to China GengSheng Minerals for the supply of fracture proppants.
China GengSheng Minerals will start delivering the materials in July 2011 and will supply nearly 1,500 metric tons of fracture proppants per month till December 2011.
This is the fourth supply contract awarded to China GengSheng Minerals by AMSAT. The contract follows the completion of a $5.4 million deal. Under this contract, about 12,000 metric tons of proppants were delivered from January 2011 to June 2011.
AMSAT has placed the new $4.2 million order for customized fracture proppants of 69 MPa size. The company will distribute these materials to its customers in the North American oil and gas industry.
China GengSheng Minerals is recognized by AMSAT as a valuable and long-term partner and distributor of superior quality proppant materials. The current contract will increase growth opportunity for proppant materials in the global markets.
In 2011, China GengSheng Minerals has extended its production capacity to 90,000 metric tons in the Q1 of 2011 to meet the increasing demand in local and international markets. The company has also started the construction of a fracture proppant production plant with 60,000 metric ton capacity. Production is expected to commence in the 3Q of 2011.