ZincOx confident technical problems behind themZincOx Resources pic, the developer of a rotary hearth zinc recovery project from EAF dust in South Korea, announced its results for the six months ended 30 June 2013.
It reports that the Korean Recycling Plant (KRP1) has shown improved operating performance processing 11.5kt/month of EAF dust (EAFD) with a zinc recovery rate of over 90%. The EAFD feed material has proved richer in zinc than originally expected.
The combustion efficiency of the furnace has been improved by better gas and air management.
Test work confirms the ability to upgrade the zinc concentrate to zinc oxide of industrial purity.
Overhead have been cut by 35%.
Delays due to technical reasons in getting the plant up to full operating capacity to treat 400kt/y of EAFD resulted in an operating loss of US$14.402M for the 6-months to 30 June 2013 and a net loss of $17.640M.
Commenting on the half yearly results, Andrew Woollett, Chairman said "We have resolved the issues of the last six months and are now poised to ramp-up production by the year end and at the same time demonstrate the full potential of this game changing technology”.
A £4.2M ($6.3M) loan provided to the Group during July has an interest rate of 10% which is covered by cash received from land sales in Turkey over which the loan is secured. The directors have reviewed the future forecasts and funding requirements of the Group based on an underlying set of assumptions for the ramp up at KRP and the zinc price.
No comment in the report was made on the recovery of direct reduced iron which was originally planned as a value added by-product. Also no comment was made on the proposal to build a second recovery plant on the site. However, ZincOx say it remains their intention to roll out the technology around the world and progress is being made in Turkey, Russia and Thailand.