Dowa Agrees in Expansion of Tizapa Zinc Mine, Mexico

Dowa Holdings announced on Thursday output expansion of zinc ore by 40% at Tizapa mine, Mexico in which the firm holds 39% shares. Crude ore production at the mine will be expanded from current 570,000 tonnes per year to 800,000 tonnes per year until the end of 2010 with total expenditure at approximately US$ 54 million (about 5.5 billion yen). Dowa could secure stable supply of zinc ore by this output expansion.The expansion plan was agreed among 3 shareholders, Dowa Metalmine, Dowa group’s smelting subsidiary, Penoles, Mexican largest producer of nonferrous metal resources holding 51% shares in Tizapa, and Sumitomo Corporation, Japanese major trading house holding 10% shares in Tizapa. Tizapa mine currently produces zinc crude ore at 51,100 tonnes per annum. The annual production is expected to increase to 71,600 tonnes. Grade of crude ore is 50%.Dowa group purchases 80% of zinc crude ore produced at Tizapa and supplies to Iijima smelter of Akita Zinc, a zinc smelting subsidiary in Akita, Japan. Iijima smelter produces electrolytic zinc at 190,000-200,000 tonnes per year. Tizapa’s ore now represents 15% in Iijima smelter’s total ore consumption while the ratio will rise to 20% after Tizapa expansion.Tizapa mine is one of Mexican largest zinc mines which have produced zinc ore at more than 5 million tonnes since its opening in 1994. The mine is located 120 kilometers southwest from Mexico City. The shareholders decided 40% output expansion since they had prospected around the operating deposit and confirmed inferred resources at 13.5 million tonnes.