Anthony Mota, Commercial Director of Reichenbach srl, describes his company's gypsum operations in the Dominican Republic...
Global Gypsum (GG): Please could you introduce Reichenbach's gypsum activities to our readers?
Anthony Mota (AM): Reichenbach has operated in the construction and heavy machinery sectors in the Dominican Republic for many years. In 2012, it was offered the opportunity to diversify by purchasing a concession on a large gypsum quarry in the southern part of the Dominican Republic.
GG: How significant are the reserves?
AM: The quarry, located in La Canoa, close to Barahona, is home to significant quantities of high-quality gypsum. Current proven reserves are at least 15Mt, although we anticipate the true extent of the deposit to be larger. In terms of quality, our drill tests show reserves of approximately 93 - 94% pure gypsum. Crucially, this does not vary by more than 2%. This ensures that we can supply customers extremely reliably with both high quality and high consistency material.
GG: How is gypsum extracted and sold?
AM: We extract gypsum from an open face within the quarry. It is broken by Hyundai excavators and brought to a 100t/hr primary crusher by front end loaders. There is then a secondary crusher to reduce it to the required size. Once prepared, the gypsum is stored in the open air. This area of the Dominican Republic is arid, so any rain evaporates very quickly as soon as the sun comes back out.
GG: How much is extracted at present?
AM: At the moment we produce 12 - 18hr/day, six days per week. The exact schedule varies depending on demand, but I would say that we extracted around 0.45 - 0.50Mt in 2023. If we switched to 24/7 operations, we would be able to produce about twice as much than at present.
GG: Who are your main customers - and what do they ask for?
AM: We supply a number of local cement producers, including Cemex Dominicana, Cementos Cibao, Cementos Panam. In the United States, we have a major wallboard sector client in the form of Saint-Gobain, which we supply via a third party.
These customers ask for different types of gypsum. Cement companies want rock that is 25 - 35cm in diameter. Wallboard producers ask for gypsum that is 5 - 25cm in diameter.
GG: How is material transported to customers?
AM: Domestic clients are served entirely by road. International clients are supplied via the government-operated port at Barahona, which is just 23km from the quarry. Ships below 17,000t dwt are loaded using on-ship cranes. Ships larger than 17,000t are loaded pneumatically by a third-party contractor. The largest shipment we can make is 35,000t due to harbour loading limitations.
While export sales currently represent a small percentage of production, we want to sell exclusively to the export market in the longer term. This is because the international market is more stable - and much larger - than that of the Domincan Republic.
GG: How are inflation and shipping rates affecting the company?
AM: Inflation is not a major concern in the Dominican Republic, in contrast to some other countries. Shipping and operational rates are closely linked to oil prices, so we have seen some fluctuations over the past 1 - 2 years. However, we expect relative stability for 2024.
GG: What are your targets for 2024?
AM: We are looking to obtain two new overseas clients, each with a monthly shipment of 35,000t. These will be sold on a fee on board (FOB) basis, so there is no complication for us. We are targeting customers in the US, particularly on the Eastern Seaboard, because the Dominican Republic has a free trade agreement (FTA) with the US.
Mexican quarries on the Pacific side are now limited by new restrictions on the Panama Canal, so conditions are favourable for us at the moment. We would also consider new clients in Canada, but there are high-quality gypsum deposits in that country and, unfortunately, no FTA with Canada.
GG: What do you want the business to look like in 2030?
AM: We want to grow the business ambitiously, as described above. This will likely require additional equipment at the quarry. We will also add equipment for finer grinding of the gypsum as, ultimately, we want to specialise in agricultural gypsum. Building materials are all well and good - and we will continue to supply those markets - but agricultural gypsum is a value-added product. It will help us to fulfil Reichenbach's agricultural division's main purpose, which is sustainability. This enables us to respect biodiversity, interdependence and self-sufficiency, based on a fair and equitable distribution of nature's wealth.
GG: What is the biggest barrier to the company's development over the same time period?
AM: We see no big obstacles on the horizon.Reichenbach has a unique place among companies that operate in the Dominican gypsum sector and the government is very keen on exports. I would say that we are in a very good position.
GG: We look forward to following your progress.
AM: We look forward to updating Global Gypsum Magazine - and its readers!
