VIETNAMESE RECYCLING PLANT


Vietnam Recycling Plant, 3D model

In 2012, following the commissioning of the Korean Recycling Plant, ZincOx began to search for other places where its technology could be applied.  Vietnam had one of the fastest growing steel industries in the world and annual EAFD production was expected soon to be in excess of 100,000 tonnes.

The company approached the steel mills with the intention of securing long term supply contracts to underpin the development of a new Vietnamese plant.  Soon thereafter, the government recognised the growing problem of EAFD disposal and asked for proposals to set up a plant in the province of Ba Ria Vung Tau. Following a competitive evaluation ZincOx was awarded the licence to build a plant together with special investment privileges including an attractive corporate tax holiday.

ZincOx commenced design work in July 2015 and in January 2017 Korea Zinc, which had been operating the Korean Recycling Plant for 11 months, became partners in the Vietnamese project, and agreed to cover the entire cost of the definitive development study at a cost of US$2.5 million to earn a 51% interest in the project.  The definitive development study covered basic engineering, geotechnical survey, technical design, costing , and environmental permitting and was carried out in sufficient detail for the requirements of an application for a construction permit.

In December 2017, a site covering nine hectares was purchased in the Phu My 3 industrial estate, in the south of the country, about 70 km south-east of Ho Chi Minh City.  In January 2018 there was a groundbreaking ceremony.

ZincOx sold its interest to Korea Zinc for US$2.8 million and, subject to the plant operating as planned and a reasonable zinc price (US$2,600 per tonne), additional technical assistance and marketing support fees amounting to about US$2.7m million payable over the over the first five to eight years after first production.

Vietnam Recycling Plant, May 2018

The Vietnamese plant will be the first Full Cycle plant and will be developed in two phases, the rotary heart furnace and zinc upgrading will be developed in the first Phase and the iron melter in Phase 2. The plant is designed to treat 100,000 tpa EAFD for the production of about 30,000 tpa of zinc oxide with a grade of over 99.5% zinc oxide suitable for ceramic and rubber uses.

The plant is due to commence production in June 2019.