Turkish zinc oxide producer Cinkom is looking for a foreign partner to build a zinc metal refinery with annual capacity of 100,000 tonnes, the company's chairman said on Tuesday. "We are looking for a foreign partner...We have mandated Fortis and Garanti Bank to find one," Saffet Arslan, chairman of Cinkom, told Reuters.
"Talks are continuing with some companies, but we're at an early stage," he said, without naming prospective partners. Cinkom previously announced plans to start producing zinc metal but Arslan said they needed a foreign partner for know-how and technology.
Arslan said the company also aimed to increase its clinker capacity. "We have just expanded our annual clinker capacity to 70,000 tonnes, from 30,000, starting from this month. By 2008 we aim to increase it to 100,000 tonnes," he said.
Zinc clinker or oxide is a yellowish powder that requires further processing to become zinc metal. Arslan said Cinkom had purchased four zinc and lead mines in Central Turkey with Turkish conglomerate Dedeman Group, and aimed to start mining for ore this year.
Zinc prices on the London Metal Exchange have gained around 40 percent since early February on dwindling stocks, worries about supply and a renewed investor interest in industrial metals.
The future of Xstrata's McArthur River operation, which has run out of underground reserves, is in question. The company hopes a new government bill will allow it to redevelop the mine, which produced 135,000 tonnes of contained zinc last year.
Comments
Comments are closed.