4th Apr 2005 07:00
ZincOx Resources PLC04 April 2005 ZincOx completes preliminary economic study on zinc recycling project in theUnited States ZincOx Resources plc (Ticker: ZOX) is pleased to announce the completion of apreliminary economic study on the Mid-West Recycling Project ("MWRP"), in NorthAmerica. The project involves the development of a plant to extract zinc fromelectric arc furnace dust (EAFD). The preliminary economic study, using a zinc price of US$1,000 per tonne, hasindicated that the project should have a post tax net present value of about £22million (at a discount rate of 10%) and an internal rate of return of 25%. Commenting on the announcement, Andrew Woollett, ZincOx's managing directorsaid, "The Mid-West Recycling Project represents the second recycling project inour global strategy for the treatment of EAFD. It is the most advanced of anumber of recycling projects we are working on and having such excellenteconomic returns, we believe it will provide a development blueprint that we canreplicate elsewhere in the world". In January 2005 the company announced the formation of a strategic alliance withEnvirosafe Services of Ohio Inc ("ESOI"), one of North America's largesthazardous waste disposal companies. ESOI has patented technology that chemicallyand physically stabilises hazardous waste so that it can be disposed of innon-hazardous landfill sites. This technology has been approved by the USEnvironmental Protection Agency ("EPA"). ESOI has recently completed tests on the residue produced by the LTC process andhas confirmed the amenability of their technology to stabilise this material. ESOI has a stabilisation plant in North West Ohio together with a hazardouswaste landfill facility permitted for 240,000 short tons per annum. ESOI handlesEAFD from all over the mainland USA and has excellent working relations withboth steel producers and the EPA. In addition to disposal, ESOI has considerableEAFD collection and transportation experience. Under the terms of the alliance, ESOI will be responsible for the delivery ofEAFD to the MWRP and will collect the residue and be responsible for itsstabilisation and disposal. Consequently the zinc feedstock for the ORP will beobtained effectively at no cost. EAFD will be treated using the LTC process to produce about 20,000 tonnes ofzinc oxide per annum for sale direct to industrial consumers in North America.Output will rise to 30,000 tonnes of zinc oxide per annum in the fourth year ofproduction. Several potential sites for the MWRP have been identified and are being reviewedin light of local taxes, infrastructure, and proximity to steel mills andresidue disposal facilities. The feasibility study is due for completion in the second half of 2005. For more information please contact: Andrew Woollett Leesa Peters / Laurence ReadZincOx Resources plc Conduit PRTel: +44 (0) 1276 455 700 Tel: +44 (0)20 7936 [email protected] +44 (0)781 215 9885 [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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