INDEPENDENT REPORTS

An independent report on the KRP development and technology has been prepared by Saint Barbara. Saint Barbara are an international firm of consulting metallurgists that, among other services, perform due diligence on metallurgical processes on behalf of banks providing project finance for the development of new operations.

The full Saint Barbara report contains sensitive information and is, therefore, confidential. The principal conclusions of this report are printed below.

1.Testwork

  • a. EAFD sampling from all Korean EAF operations has been undertaken and representative samples prepared.
  • b. Various test work on representative samples has been undertaken.
  • c. The test work has replicated the overall process and individual steps to be employed in the KRP project.
  • d. Sophisticated computer modelling of the process has provided enhancements to the process technology.
  • e. Testwork has enabled various parameters to be evaluated, including: i. Zinc recovery ii. Iron metallisation iii. Zinc product quality iv. Iron product quality v. Binder specifications and consumption vi. Coal specifications and consumption
  • f. Computer modelling has enabled the mass and energy balance of the process to be estimated, including: i. Operating parameters ii. Gas consumption
  • g. Research and test work results indicate that the process technology should work as anticipated.

2. Process

  • a. The process to be undertaken at KRP involves the use of various units of standard equipment that have been individually demonstrated in commercial operations for the task required at KRP.
  • b. ZincOx has identified the weaknesses of previous attempts to use this technology and incorporated procedures to eliminate them.
  • c. The equipment being installed by ZincOx is appropriate for the defined process technology.
  • d. The configuration of this specific, proven equipment is new but similar processes have been built and operated successfully.
  • e. The test work, and extensive research and development by ZincOx and its various technology partners, have greatly reduced the operational risks associated with a novel process.
  • g. The engineering design and development plan is reasonable.
  • h. A HAZOP study was undertaken and the action plan to remove the identified risks is nearing completion.