Dec 9 2009
Ausmelt Limited (AET) announced today that it has won its second tin smelter contract in China. This contract is Ausmelt's 13th in China and follows the recent signing of a new Chinese copper smelter project in November.
The Company will supply tin smelting technology, design and technical services, and core equipment for a tin smelter with a capacity to allow the production of around 20,000 tonnes a year of tin metal. The client is China Tin Co., Limited. China Tin is the second largest tin producer in China and the new smelter will be located alongside the existing facility at Liabing City in China?s Guangxi Zhuang Autonomous Region.
The contract price is confidential but will provide material revenues and profits to Ausmelt over the next two to three years.
China Tin Vice-General Manager, Mr Liao Chuntu said that China Tin has made this critical decision on technology after extensive investigation of all of the technology options available.
He said "this project is a critical part of China Tin?s strategic plan and we will be working closely with Ausmelt to ensure a successful outcome to the project."
Ausmelt Managing Director, Mr Paul Abbott, said today that Ausmelt was very pleased to have captured this new project.
"This project has further cemented Ausmelt top submerged lance smelting technology as the technology of choice in the global tin industry. Four of the top ten tin producers have now chosen Ausmelt technology. On completion of this project the total global production of tin metal from Ausmelt furnaces will exceed 120,000 tonne a year or about a third of the total global production."
This project will further strengthen Ausmelt?s order book. Ausmelt now has more than $50 million in contracted revenue yet to be recognised.