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ZincOx set for new start with Vietnam recycling plant

Published: 07:28 24 Nov 2016 GMT

KRP
The new plant will be based on ZincOx's Rotary Hearth Furnace (RHF) technology, which it developed in Korea.

A fresh start is on the cards for Zincox Resources plc (LON:ZOX) as it struck a  deal with partner Korea Zinc to jointly develop  a new recycling plant in Vietnam.

The plant will be based on ZincOx's Rotary Hearth Furnace (RHF) technology, which it developed in Korea.

The memorandum of understanding (MoU) sets out the joint venture under which Korea Zinc and ZincOx will design and develop the new plant.

Andrew Woollett, chief executive of ZincOx, said: "We can now accelerate the programme for the development of this important project, and we look forward to entering into the full joint venture agreement in the very near future.

The plan sees Korea Zinc fund 100% of a US$2.25mln definitive development study (DDS) to raise the project finance needed for construction.

Korea Zinc will own 51% of a special purpose company which will be set up to develop the plant, with the remaining 49% held by ZincOx.

In the event that the DDS costs more than US$3mln, the interest of ZincOx in the joint venture shall be diluted proportionately, said ZincOx.

But ZincOx will be able to buy back its interest up to 49% within the following six months.

The current Korean plant is one of the world's largest facilities recycling the waste dust (EAFD) generated by recycling galvanised steel scrap and has a design capacity of 200,000 tonnes per annum.

Last year ownership of ZincOx's  Korea plant was transferred to Korea Zinc after it was unsuccessful in a bid to reschedule its debt owed to the latter.

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