Korean Recycling Plant Commissioning Update (0754B)
11 April 2012 - 4:00PM
UK Regulatory
TIDMZOX
RNS Number : 0754B
ZincOx Resources PLC
11 April 2012
ZincOx Resources plc
("ZincOx" or the "Company")
Korean Recycling Plant Commissioning Update
ZincOx Resources plc (AIM: ZOX), which specialises in the low
cost recovery of high grade zinc compounds from unconventional
sources,announces that while steady progress is being made in the
final commissioning of its wholly owned Korean Recycling Plant
("KRP"), this has been slower than anticipated and first production
from the plant is now expected to take place in May.
Since the announcement of 2 April 2012, numerous small
commissioning issues have been sorted out in the past week, but the
completion of commissioning is being held back due to problems in
the operation of the combustion system for the Rotary Hearth
Furnace ("RHF"), that could have only come to light at this stage
of the commissioning. The combustion system comprises forty gas
burners set up in eight sets, with complex gas and air flow
monitoring and control systems that involve several pieces of
equipment. The design and installation of this equipment, and its
delivery in full working order, is the responsibility of technology
suppliers which also provide performance guarantees. In order to
maintain these guarantees, both ZincOx and the project's main EPCM
contractor must rely on the technology provider to take
responsibility for the delivery of equipment.
After evaluation, problems in the first set of burners, which
were tested by the equipment supplier, were traced to a new valve
that was found to be broken. This is being repaired and equipment
in the other sets of burners is now being tested. Over the past few
days two sets of burners have been successfully fired and work will
progress on the commissioning of the remaining sets over the coming
weeks. When all the burners have been successfully fired up
independently, a group test will be carried out. After the group
test, additional final checks will be made on the computer
controlled Burner Management System which includes 'fail safe'
safety procedures, prior to first production.
Commenting on the announcement, Andrew Woollett, ZincOx's
Chairman, said "We are disappointed to have to delay start up
further, but it is not unusual for such unforeseen issues to arise
when commissioning a project of this type. We are encouraged that
the initial problems have now been identified and that the
combustion system is being tested so that we can achieve a rapid
and safe start up. We anticipate that production will be on track
in May when I will update shareholders with further news."
For further information please contact:
ZincOx Resources plc Tel: +44 (0)1276 450 100
Andrew Woollett, Executive Chairman
Peel Hunt LLP (Nominated Adviser and Joint Tel: +44 (0)20 7418 8900
Broker)
Richard Kauffer
Daniel Harris
finnCap Limited (Joint Broker) Tel: +44 (0)20 7220 0500
Matthew Robinson
Joanna Weaving
Tavistock Communications Tel: +44 (0)20 7920 3150
Lydia Eades
Simon Hudson
Paul Youens
This information is provided by RNS
The company news service from the London Stock Exchange
END
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