ZincOx Resources signs MoU on Vietnam project

ZincOx Resources plc, a Surrey, U.K.-based company that recycles electric arc furnace dust (EAFD) generated in processing ferrous scrap, has signed a Memorandum of Understanding (MoU) with Korea Zinc (KZC), a smelting company headquartered in Seoul, to establish a joint venture that will focus on building a recycling project in Vietnam.

Under the MoU, KZC will fund 100% of a definitive development study that will allow the two companies to raise the project financing to build the recycling project. The study is expected to cost $2.5 million.

Following the study’s completion, KZC will own 51% of a special purpose company that will be set up to develop the recycling plant; the remaining 49% will be held by ZincOx.

The recycling plant as planned would handle 100,000 tonnes per year of EAFD generated by recycling galvanized steel scrap and would upgrade the iron and zinc intermediate products of the rotary hearth furnace (RHF) into final products.

The RHF technology was developed by ZincOx in Korea. 

In the event the study costs more than $3 million, the interest of ZincOx in the joint venture will be diluted proportionately according to the additional funds that KZC will have contributed. However, ZincOx will be able to buy back its interest to 49% on the same terms in the following six months.

The companies are partners on a similar project in Korea that has a design capacity of 200,000 tonnes per year of EAFD.

Andrew Woollett, ZincOx CEO, says, “We can now accelerate the programme for the development of this important project, and we look forward to entering into the full Joint Venture Agreement in the very near future.”