Major step forward for Korean Recycling Plant

Korea – ZincOx Resources plc has announced the completion of an offtake agreement and the formal documentation for loans to be provided by Korea Zinc for the development of the first phase of the company’s Korean Recycling Plant (KRP), which is scheduled for completion in the first quarter of 2012.

The offtake agreement covers the entire zinc concentrate production from Phase 1 of the project and lasts for ten years from first production. The concentrate will be sold on the basis of the ordinary international formula for pricing of concentrate between mines and smelters, but includes a fee to cover the cost of removing chlorides and fluorides by washing, in line with normal industry practices. In addition, Korea Zinc has agreed to provide two loans: the offtake loan and the development facility.

The former is for US$ 35 million; repayment will commence following the repayment of the development facility. The KRP will treat 200 000 tonnes per annum of steel waste dust (EAFD) in Phase 1 and produce approximately 70 000 tonnes of zinc concentrate (58% zinc) and 95 000 tonnes per year of an intermediate iron product. Capacity will then double under Phase 2 which will involve new financing arrangements, discussion of which has already commenced with international banks.

Andrew Woollett, ZincOx’s Executive Chairman, says: ‘We are delighted to have such strong support from one of the world’s largest zinc producers and their commitment reinforces the strength of the technology. Excellent progress is being made at site and the development remains on schedule and within budget.’