First Feedstock Arrives at Korean Recycling Plant (4255W)
January 31 2012 - 1:00AM
UK Regulatory
TIDMZOX
RNS Number : 4255W
ZincOx Resources PLC
31 January 2012
31 January 2012
ZincOx Resources plc
("ZincOx" or the "Company")
First Feedstock Arrives at Korean Recycling Plant
ZincOx Resources plc (symbol "ZOX") is pleased to announce the
first delivery of feedstock, Electric Arc Furnace Dust ("EAFD"), at
its wholly owned recycling plant in South Korea.
The arrival of the EAFD will enable the plant to undergo
commissioning with actual feed material - so called "Live
Commissioning". The Live Commissioning marks the final stage in the
development of the plant and is expected to take about four to six
weeks from today. Production will commence immediately thereafter
which is in line with the first quarter schedule previously
announced. Pictures of the unloading of the first trucks are
available on ZincOx's website (www.zincox.com) using the following
link:
http://zincox.lucidwebs.co.uk/recycling/photo-gallery.asp.
The hot briquetting plant and Rotary Hearth Furnace will be
mechanically commissioned over the coming weeks. All other parts of
the plant have already been mechanically tested. The development of
the plant is 95 per cent complete and the project remains on
budget.
Commenting on the announcement, Andrew Woollett ZincOx's
Chairman said "We are delighted with the progress of this project,
remaining, as it does, on schedule and within the budget we set
when we started the development 16 months ago, and we look forward
to our first production before the end of this quarter"
The Korean Recycling Plant ("KRP"), is being developed in two
equal phases. Phase 1, referred to above, is designed to treat
200,000 tonnes per year of EAFD, a waste generated by the recycling
of steel scrap, and to produce 49,000 tonnes per year of zinc in a
concentrate. Korea has a thriving scrap steel recycling industry
that generates furnace dusts which, due to the galvanised nature of
scrap, contains high concentrations of zinc (18 to 28 per cent).
All the major Korean scrap steel recycling companies have entered
into ten year EAFD supply agreements with ZincOx. KRP's zinc
bearing concentrate is suitable as a feed for zinc smelters, and
for Phase 1 it is being sold under a long term contract to Korea
Zinc, one of the world's largest zinc metal producers. The non-zinc
residue from processing EAFD is made into an intermediate iron
bearing product that can be sold to scrap steel recycling
companies. Importantly, the process generates no waste.
Phase 1 of the KRP development is being developed at a capital
cost of US$110 million and is expected to generate, at a zinc price
of US$2,250 per tonne, about US$31 million in EBITDA per year. Once
Phase 1 has reached full capacity, it is planned that development
of Phase 2 will be commenced and this is expected to be in
production in H2 2013.
For further information please contact:
ZincOx Resources plc Tel: +44 (0)1276
450 100
Peel Hunt LLP (Nominated Adviser Tel: +44 (0)20
and Joint Broker) 7418 8900
Richard Kauffer
Daniel Harris
finnCap Limited (Joint Broker) Tel: +44 (0)20
Matthew Robinson 7220 0500
Joanna Weaving
Tavistock Communications Tel: +44 (0)20
7920 3150
Lydia Eades
Simon Hudson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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