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Gold/Mining/Energy : ZINC The base metal. News and Views. Symbol Zn -- Ignore unavailable to you. Want to Upgrade?

To: jack hampton who wrote (161)	3/28/1999 11:02:00 PM
From: jack hampton	Read Replies (1) \| Respond to of 3270

Found this at www.russiatoday.com of all places. By the way, the Townsville strike is over. REUTERS 1531 220399 GMT BNX RMR RTR_TNS 3 OEC 441 G22572213 IRELAND-KAZAKHSTAN Ennex says Kazakh zinc site offers low costs DUBLIN, March 22 (Reuters) - Irish mining company Ennex International Plc said on Monday a feasibility study had shown its Shaimerden zinc project in Kazakhstan could be one of the lowest-cost zinc producers in the world. Results from the study by its subsidiary Zinc Corp of Kazakhstan Ltd (ZCK) had shown the project would benefit from the technological advantages of producing zinc metal directly from the high-grade ore in the deposit, Ennex said in a statement. "The cash operating cost on site is 19 (U.S.) cents per pound, with transport to Europe accounting for an estimated additional seven cents. This compares with an industry average of over 40 cents per pound," the company said. The Shaimerden project comprises a mine and zinc refinery with an annual capacity of 100,000 tonnes of metal per annum. Ennex said it believed that adding value to the project could best be achieved by developing Shaimerden in association with a partner in the zinc industry or through a sale or partial sale. A number of companies would be reviewing the project over the coming weeks. The capital cost for the development and construction of the project was $285 million, with net cash flow of around $303 million based on a long-term zinc price estimate by metal analysts group Brook Hunt, Ennex said. At five percent discount the project was valued at $152 million, with a payback period on capital of four-and-a-half years. The project design was based on mining the ore over a period of six years while operating the plant for 10 years using stockpiled ore, Ennex said. The deposit contained a mineable reserve in the proven and probable categories of 4.28 million tonnes at a grade of 20.9 percent zinc. The feasibility study envisaged a 27-month construction period. "This is an important milestone for Ennex and represents a major asset for the company," Managing Director Christian Schaffalitzky said. Both Tecnicas Reunidas and Union Miniere had agreed to provide design guarantees for the project, Ennex said. It was in preliminary discussions with selected international banking groups regarding project debt finance. ( (c) 1999 Reuters)