Zincox Resources Plc Regulatory News (ZOX)

18 Jan 2005 07:00

ZincOx Resources PLC18 January 2005 ZincOx Commences Zinc Recycling Feasibility Study in the United States •Strategic alliance with major industry participant •Feed supply secured in North America •Feasibility study for development of new plant expected Q4, 2005 ZincOx Resources plc ("ZincOx", symbol "ZOX") announces the first steps towardsdeveloping a new zinc recycling plant in the United States. The company has entered into a strategic alliance with Envirosafe Services ofOhio, Inc. ("ESOI" see below) through a cooperation agreement to complete acomprehensive feasibility study for the development of a new plant to recoverzinc from waste material, electric arc furnace dust (EAFD), produced by steelrecycling. Under the terms of the agreement, ESOI will arrange for and deliversufficient volumes of EAFD to serve as feed stock for the new plant, and will beresponsible for properly managing the disposal of plant residue. ESOI is NorthAmerica's largest landfill disposal company for EAFD. Commenting on the announcement today, Andrew Woollett, ZincOx's managingdirector said "Under this agreement ZincOx will have immediate access tosufficient feed for our first North American operation and will in additionbenefit from the experience of our partner who will take responsibility formanaging the secure disposal of residue from the plant. By effectively obtainingzinc feedstock for little or no cost we expect to produce zinc/zincoxidesignificantly more cheaply than existing operations" ZincOx and ESOI are working together to complete a feasibility study for therecovery plant by the end of 2005. The plant will be strategically located inthe Midwestern United States and will either produce special high-grade zincmetal or high purity zinc oxide, at a rate of about 25,000 tonnes per annum ofcontained metal. Preliminary economic studies have been carried out on eachoption and both show low operating costs. ZincOx specializes in processing technologies for the recovery of zinc fromnon-sulphide materials. While the original focus of the company was on primarymineral deposits, it is increasingly concentrating on processing zinc bearingwaste materials. This announcement describes the second part of a globalstrategy for the recovery of zinc from steel recycling waste, the first being aTurkish project announced on the 29th November 2004. Under this global strategythe company is actively pursuing similar development concepts in Western Europeand Asia. In addition, the company is actively piloting new equipment for therecovery of zinc from waste produced by lead smelters. For more information please contact: Andrew Woollett Leesa Peters / Laurence ReadZincOx Resources plc Conduit PRTel: +44 (0) 1276 455 700 Tel: +44 (0)20 7936 9095/+44 (0)781 215 9885awoollett@zincox.com leesa@conduitpr.com Notes The production of steel by recycling scrap iron involves high temperaturere-melting in Electric Arc Furnaces, referred to as mini-mills in North America.More than half of the steel currently produced in the United States usesElectric Arc Furnaces. During re-melting of scrap, zinc and other base metalsare driven off in the flue gasses as oxides and are collected as a hazardouswaste dust in the steel mill's air pollution control system. Governmentregulations in the United States require that this dust, referred to as EAFD, bemanaged according to strict rules which ensure the protection of the environmentand public health. ESOI is one of the largest suppliers of EAFD management services to the UnitedStates steel industry, primarily through a fully permitted treatment anddisposal facility in northwest Ohio. ESOI's patented technology is currentlyused to manage nearly 30% of all EAFD produced in the United States, most ofwhich is received at its Ohio location in rail or truck transportation managedby ESOI. The Company maintains a sophisticated transportation tracking system,and a fleet of dedicated sealed railcars. ESOI's expertise in managing EAFD, itsfamiliarity with the North American steel producers, and the Company's extensiveknowledge of regulatory systems in the United States will greatly facilitate thedevelopment of the project. This information is provided by RNS The company news service from the London Stock Exchange