ZincOx Resources teams up with Korea Zinc to start up plant in Vietnam

ZincOx Resources, an AIM-listed company that recycles hazardous waste generated by recycling steel scrap, has entered into a joint-venture agreement with Korea Zinc company (KZC) to develop a recycling plant in Vietnam.

Under the agreement, KZC will fund 100% of a Definitive Development Study (DDS) in sufficient detail to enable the raising of project finance for the construction of the project.

The DDS is expected to cost about $2.5m. KZC will own 51% of a special purpose company which has been set up to develop the recycling plant with the remaining 49% held by ZincOx.

If DDS ends up costing more than $3m the interest of ZincOx will be diluted proportionately accordingly to the additional funds that KZC has contributed. ZincOx will be able to buy back its interest to 49% on the same terms in the following six months.

The recycling plant will be based on the Rotary Hearth Furnace (RHF) technology developed by ZincOx in Korea, now owner by KZC. The Korean recycling 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 (tpa).

The Vietnamese recycling plant is aimed at treating up to 100,000 tpa of EAFD and additionally upgrade both the iron and zinc intermediate products of the RHF to final products.

The share price of ZincOx fell 5.56% to 0.425p at 1233 GMT on Monday.