The company acquired the
rights to the background technology in
2008 that was validated in 2011 through
extensive laboratory work. In 2012, Metsol
conducted a commercial engineering study
and built a mini production plant (40
TPY) in Adelaide, Australia. The plant is
not only able to recover zinc oxide from
smithsonite ore, but also from electric arc
furnace dust, crude zinc oxide and galvanizers' ash.
Essentially, the Metsol process can
convert low value ore into a high value
commodity, increase the overall returns
on a smithsonite deposit by up to 300%,
achieve EBITDA margin on sale of zinc
oxide of over 30% and return capital
investment on the plant and infrastructure
within three years. This is possible since
the end product of high purity zinc oxide
is typically sold at 20% above the zinc
LME price as compared to a lower price of
harder to market direct shipping zinc ore
or zinc concentrate. The Metsol process
can handle ore grades or concentrates as
low as 12% zinc.
Gros, suggests it would make sense to
build a Metsol plant at a minimum size
of 5,000 tonnes per year next to or near
a mine site which would provide significant cost savings by shipping the high
value-high purity zinc oxide versus comparatively low value zinc ore concentrate.
In addition to the patent protection in
Australia, the company is currently seeking patent approvals in the US, Canada,
Europe, China and Brazil. To date, Metsol
has attracted a number of investors,
including the Cleantech Australia Fund
comprising the Australian government and
Australian Pension Funds, the Victorian
Clean technology Fund as well as private
investors.
Metsol is seeking a joint venture partner that is already established in the zinc
industry or a company with zinc-bearing
feedstocks on hand. n
www.miningworld.com
52 www.resourceworld.com
november 2013
