ZincOx Resources PLC Korean Production Update (4372C)
17 March 2014 - 6:01PM
UK Regulatory
TIDMZOX
RNS Number : 4372C
ZincOx Resources PLC
17 March 2014
17 March 2014
ZincOx Resources plc
("ZincOx" or the "Company")
Korean Production Update
ZincOx Resources Plc, (AIM:ZOX) is pleased to report good
progress at its wholly owned Korean Recycling Plant (KRP). The KRP
is one of the largest Electric Arc Furnace Dust recycling
facilities in the world and uses a new process to recover a high
quality zinc oxide concentrate and an iron bearing intermediate
scrap substitute.
Highlights
-- Record production in January 2014;
-- Continuing increase in KRP's monthly production;
-- Replacement of the inner shell of the second heat exchanger ahead of schedule;
-- Further replacement of inner shells in remaining two heat
exchangers, originally planned for August 2014, to be made in April
to improve plant performance ahead of schedule.
January 2014 was a record month, with 3,131 tonnes of zinc in
concentrate being produced, which generated a positive EBITDA(1) at
KRP of over US$200,000. Production during the month was, however,
constrained by a lack of oxygen contracted from the external
supplier. The supplier has since increased the capacity of the
supply by the addition of a new evaporator which is now in
operation. In March, as a result of the increased availability of
oxygen, production continues to increase and at current run rates
it is expected to be significantly higher than in January. In the
first sixteen days of March 1,750 tonnes of zinc in concentrate was
produced.
During February, the gas handling system suffered a slight
leakage in one of the heat exchangers which was scheduled to have
its inner shell replaced during a period of planned maintenance in
March. In view of the reduction of efficiency experienced by this
unit, it was decided to bring forward the replacement of its inner
shell by one month and this was completed successfully in February.
At the same time the closure enabled repair work to be undertaken
on the rotary hearth furnace which involved the renewal of the
refractory in the complex area between the feeder and discharge
screw. These repairs stretched over several days so that production
for the month amounted to only 1,053 tonnes of zinc in concentrate.
However, as a consequence of these works, March should be a full
month with no special downtime planned or expected.
In 2013, production was limited by several periods of closure
which were the result of repairs required to address corrosion of
the inner shells of the heat exchangers. There are four heat
exchanger units, two of which have now had the inner shells
replaced. Replacement of the inner shells of the other two heat
exchangers, which was scheduled for August 2014, has now been
brought forward to April to improve the reliability of the plant.
The inner shells will be replaced using specially manufactured
stainless steel ordered from Europe at the end of 2013 and which is
due to arrive in Korea in the coming week. Following these
replacements the heat exchangers should not require further
attention and production should proceed without interruption until
August/September when there is a planned inspection and maintenance
stoppage in line with the overall availability plan for the
plant.
Commenting on the announcement, Andrew Woollett, ZincOx's
Chairman said,
"We are pleased to see the recent increases in production and
the improving reliability of the operation. The ramp-up is very
much on track with numerous operational improvements, some ahead of
the original schedule. We are confident of making considerable
further progress over the coming months as we ramp-up to full
production"
EBITDA(1) means Earnings Before Interest, Tax, Depreciation,
Amortization
For further information, please contact:
ZincOx Resources plc Tel: +44 (0) 1276 45 0100
Andrew Woollett, Executive Chairman
Peel Hunt LLP (Nominated Adviser and Joint Tel: +44 (0) 207 418 8900
Broker)
Richard Kauffer
Daniel Harris
Matthew Brooke-Hitching
finnCap Limited (Joint Broker) Tel: +44 (0) 207 220 0500
Matthew Robinson
Joanna Weaving
Tavistock Communications (Financial PR) Tel: +44 (0) 207 920 3150
Simon Hudson
Nuala Gallagher
This information is provided by RNS
The company news service from the London Stock Exchange
END
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