Toho Zinc to Debut as Zinc Ore Supplier

Toho Zinc will become net zinc ore shipper. The firm secures zinc concentrates more than around 240,000 tonnes per year now by purchasing from Endeavor of Australia, in which Toho Zinc has interest, from Sulphur Spring mine of Australia, for which the firm waits for development timing after exploration, and from Antamina mine of Peru, with which the firm has long term purchase contract to 2012. The firm can sell zinc concentrate for third party other than for own consumption after the firm will develop Rasp mine of Australia. The firm purchases around 240,000 tonnes per year of zinc concentrate to make electrolytic zinc at Annaka refinery in Gunma. The firm purchases around 80,000 tonnes from Endeavor mine of CBH Resources of Australia, in which Toho Zinc has 25% interest. Endeavor mine still has annual 50,000 tonnes of supply contract to Zinifex, which is former Pasminco. After the contract with Zinifex, Toho Zinc can purchase all of the production in 2009. Toho Zinc has 2 mining projects to develop in Australia. One is Sulphur Spring mine in west Australia. The mine is in feasibility study phase after exploration. With development of the mine, Toho Zinc could secure 70,000-80,000 tonnes per year of zinc concentrate. The other project is Rasp mine in Broken Hill area. Toho Zinc expects the development can be started in February-March 2007. Toho Zinc already announced the firm would invest around 6 billion yen for those developments under mid-term plan to fiscal 2008. Toho Zinc purchases around 160,000 tonnes per year through purchase negotiation in every year end from third party mines including Antamina of Peru, with which Toho Zinc has 11 years purchase contract started in 2001. With the series of mine developments, Toho Zinc can secure zinc concentrate more than the own use. The firm will enter the concentrate sales market as a supplier.