value of zinc process

It is worth looking at Intec's deal with Smorgon to see what this latest step for APG might be worth.

In early 2006, Smorgon agreed to supply a 22,000t stockpile of zinc rich EAF dust to Intec for processing at its Hellyer plant.

For its trouble, Smorgon would pay INL $110 per tonne. In addition, INL indicated that the zinc metal value in the dust was worth around $16M to INL. Zinc prices are now about 30% higher than early 2006..... $21M. That provides a potential revenue of $1050 per tonne to APG. INL Operating cost is around US$250-300/t Zn. Profit is therefore around AU$650-700/t Zn.

The INL process is quite sophisticated and requires electrolytic removal of the zinc metal from leach solution, then charging into a furnace to form ingots.

The APG process (rough guess here) would not need the electrolytic cells.

Capital cost for an Intec plant is estimated in the range US$800-1100 per tpa Zinc capacity. This is not too different from the APG demo plant cost that also includes an ilmenite roasting section.

INL Operating cost is around US$250-300/t Zn.

Electric arc furnaces are booming. I presume EAF dust generation must be as well. This is certainly going to be a nice little earner!! No wonder the market liked the sond of the announcement.