UK-company ZincOx Resources is ramping up its first production plant in Korea after a successful demonstration period.
Phase one of the Korean Recycling Plant (KRP1) is designed to process 200,000 tonnes per annum of Electric Arc Furnace Dust. This will make it the largest dust recycling facility in Asia. The project was also developed on time and within a budget of $110 million (£70 million).
Zinc is currently priced at $2,250 (£1,434) per tonne, and using current energy costs KRP1 will generate underlying earnings of approximately $31.2 million (£19.89 million) each year.
KRP2 phase two will process a further 200,000 tonnes of furnace dust per annum and will make ZincOx the third largest recycler of this material in the world. When in full production both plants will produce 92,000 tonnes of zinc per annum in high grade concentrate.
ZincOx made a loss of £8 million, down from £112 million in 2011, on revenues of £1.65 million.
Executive chairman Andrew Woollett said: “We are delighted that out first recycling plant is now in operation and that the process has been successfully demonstrated in Korea.
“We are excited by the prospect of the full ramp up on KPR1 while we start the development of KPR2 and push ahead with working up projects elsewhere in the world.”
KPR2 is estimated to cost a further $100 million (£63 million) and take 15 months to construct.