The lease agreement provides a minimum rent-free period of five years conditional upon ZincOx completing the development of Phase 1 of the KRP within two years and Phase 2 within four years.
The KRP Site, located 10km west of Pohang, one of South Korea’s major steel producing centers, will supply approximately 20% of KRP’s feed requirements and will also host potential customers for KRP’s iron product, ZHBI.
ZincOx that will process electric arc furnace dust (EAFD), a waste generated by South Korea steel recycling companies, at the KRP site has 10 year supply contracts for 400,000 tons of EAFD per annum (23% zinc).
ZincOx intends to treat 200,000 tons of EAFD in Phase 1 to produce 60,000tpa zinc oxide concentrate at 73% zinc and approximately 95,000 tons of ZHBI annually, with plan for the first production of zinc concentrate from the KRP in Q1 2012.
In Phase 2 ZincOx plans provide a treatment of a further 200,000 tons of EAFD and annual production of a total of approximately 120,000 tons of zinc oxide concentrate and approximately 190,000 tons of ZHBI.
ZincOx executive chairman Andrew Woollett said that the development of the KRP is beginning to gain significant momentum, and at the same time ZincOx is making good progress with its financing plans.
