Jan 6 2006
Smorgon Steel Group Ltd and Intec Ltd have entered into a Heads of Agreement for the initial and ongoing supply of Electric Arc Furnace Dust (EAF Dust) from Smorgon Steel to INL for use in INL’s Hellyer Metals Project in northwestern Tasmania (the Hellyer Metals Project). Closure of the transaction is expected to occur not later than 31 January 2006 and will be subject to (amongst other things) approval by the Victorian EPA.
Smorgon Steel and INL have worked together over recent months to develop techniques for the successful introduction of EAF Dust into INL’s process and both companies are confident, based on tests carried out at INL’s demonstration plant at Burnie, in the success of the process.
Smorgon Steel will initially supply approximately 22,000 tonnes of EAF Dust, which has been pelletised using Smorgon Steel’s proprietary technology, to INL. Smorgon Steel will pay INL an up-front treatment fee of A$2.42 million in relation to the initial 22,000 tonnes. These funds will be used to assist in the future development and commercialisation of INL’s process. The EAF Dust is intended to be treated at the Hellyer Metals Project, subject to the approval of the Tasmanian Department of Primary Industries, Water and Environment.
The Heads of Agreement also addresses the ongoing supply of EAF Dust by Smorgon Steel to the Hellyer Metals Project and other commercial opportunities of potential benefit to both companies.
Philip Wood, Managing Director and Chief Executive Officer of INL, stated “The initial supply of EAF Dust contains about A$16 million worth of zinc metal at today’s prices, and our test work is showing that we can extract over 95% of the contained zinc into readily saleable Prime Western zinc ingot, both economically and environmentally responsibly”.
Neville Power, Chief Executive of Smorgon Steel Reinforcing and Steel Products, said “Smorgon Steel is Australia’s largest recycler of scrap steel into new steel products. We are committed to producing excellent products using the most efficient recycling technologies available and our involvement with Intec reflects this commitment”.