KOREA RECYCLING PLANT
|
Korea has one of the world's largest steel recycling industries. ZincOx has been working in Korea for over four years and in June the company entered into a Memorandum of Understanding with KOSA, the association representing the steel industry in Korea, by which KOSA would assist ZincOx in obtaining EAFD supply commitments from various steel companies. In April 2009 this led to ZincOx entering into exclusive EAFD Supply Agreements with all Korea’s significant EAF operators: Hyundai Steel, Dongkuk Steel, Daehan Steel, YK Steel, Dongbu Steel, Hwanyoung Steel, Korean Iron and Steel Company, SeAH Besteel and Posco Specialty Steel. Together these companies generate approximately 380,000 tonnes per annum of EAFD with a zinc grade of about 22%. In May 2010 ZincOx announced that its chosen operating site in Korea has been officially designated as a Foreign Investment Zone (FIZ) by Korea’s Foreign Investment Committee. The designation is for the express purpose of recycling electric arc furnace dust (EAFD) by ZincOx Korea Limited (the Company’s wholly owned Korean subsidiary). The site for Korean Recycling Plant (KRP) is 9.3 hectares in size and is situated at the Cheonbuk Industrial Complex (CIC) approx 10km to the west of Pohang, one of Korea’s major steel producing centres. The CIC falls under the local jurisdiction of Gyeongju City and is situated in Gyeonsangbuk-Do Province. Both the Mayor of Gyeongju City and the Governor of Gyeongsangbuk-Do Province have been strong supporters of ZincOx’s plans in Korea and have been instrumental in the successful outcome of ZincOx’s FIZ application. Designation of its site as an FIZ ensures that ZincOx’s KRP will enjoy the full range of tax and other incentives available to foreign investors in Korea including a five year tax holiday. It also enables the Korean government to purchase the site and lease it back to ZincOx, thereby considerably reducing the capital cost of developing a plant. The Company expects a lease agreement to be finalised during the summer of 2010. |
 |
Over the past 12 months a comprehensive sampling programme of the EAFD generated by each steel mill has been undertaken and analysis is well underway. The results will be used to generate representative samples for pilot testing. The pilot results will enable process optimisation ahead of basic engineering. The engineering will allow equipment selection and the estimation of capital development cost. These tasks will contribute to a detailed feasibility study that will provide the basis for project financing. Korea currently generates about 380,000 tonnes of EAFD per annum and this is planned to rise to 400,000 over the next few years. The recycling plant will be designed to treat 400,000 tonnes per year of EAFD containing an average grade of about 22.5% zinc. It will have the potential to produce 160,000 tonnes per annum of a lead bearing zinc oxide concentrate (58% zinc, 4.5% lead), together with 100,000 tonnes per annum of pig iron and 65,000 tonnes per annum by-product slag.
|
EAFD Supply Agreement Signing Ceremony