Vietnamese Recycling and Upgrading Plant (‘VRUP’)

Following the proof of concept by building and operating the Korean Recycling Plant we have turned our attention to building more plants in other suitable countries and also looked at further upgrading of the HZO.

ZincOx has been actively researching potential sites for recycling plants over the past eight years and in February 2016 we signed an Investment Registration Certificate with the Government of Vietnam. Our strategy of identifying projects capable of being brought to potential joint venture partners is firmly demonstrated by the entering of a JVA with Korea Zinc Company Limited (‘KZC’) in 2017 in which ZincOx now retains a 49% interest.

Vietnam has a fast growing steel industry comprised of both primary steel making using blast furnaces and the recycling of steel scrap in EAF’s.

 

There are no large scale plants treating EAFD in Vietnam, the disposal of which presents a growing problem for the EAF operators. The bulk of the EAF’s are located in the Phu My industrial zone, about 100km south-east of Ho Chi Minh City. A site for the VRUP has been selected on the Phu My 3 industrial zone and a 61 year lease entered into.

The Company is currently carrying out a Definitive Development Study funded by KZC with the aim of completing it in Q3 2017 so that a development decision can be made before the end of 2017.

The VRUP is designed to have a capacity of 100,000 tpa EAFD and cost about US$107 million to develop.