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06.04.11
World Minerals - Alicante Energy Surcharge Notice
The recent evolution of freight, packaging and raw materials have impacted World Minerals business dramatically. In addition the price of global hydrocarbon energy in general and more particularly fuel oil and gas in Europe has increased to unprecedented levels. The rise in energy cost has had a significant impact on the production costs of our Celite plant in Alicante in Spain. As a result, effective April 1st, 2011, we have no alternative but to implement an energy surcharge which will appear as a separate line item on customer invoices.
The surcharge will apply to both calcined and non calcined grades with respect to their energy demand.
World Minerals Europe will adjust the surcharge based on the previous 6-month average of Brent price, based on the following mechanism:
| Brent $bbl - Last 6 month average | ESC (€/metric tonne) | |
| Calcined | Natural | |
| 80 - 90 | 1.20 | 0.00 |
| 90 - 100 | 4.50 | 1.60 |
| 100 - 110 | 7.80 | 2.80 |
| 110 - 120 | 11.10 | 4.00 |
| 120 - 130 | 14.40 | 5.20 |
| 130 - 140 | 17.70 | 6.40 |
| 140 - 150 | 21.00 | 7.60 |
| 150 - 160 | 24.30 | 8.80 |
| 160 - 170 | 27.60 | 10.00 |
| 170 - 180 | 30.90 | 11.20 |
The Energy Surcharge for the 2nd quarter of 2011 will be 4.50€/ton for calcined grades and 1.60€/ton for natural grades.
Assuming Brent price remains at current level during the 2nd quarter, the Energy Surcharge applicable in the 3rd quarter of 2011 would be 11.10€/ton for calcined grades and 4.00€/ton for natural grades.
Any change in the surcharge will become effective at the beginning of each quarter and published on this website and www.worldminerals.com
We at World Minerals appreciate our customers understanding during these times and look forward to their continued support.
For further information please contact us.
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