Dowa Metals & Mining Steadily Raises Smelting and Recycling Operations

Dowa Holdings’ operating company, Dowa Metals & Mining’s president Nobuo Yamazaki told Japan Metal Bulletin the group smelters and metal recycling plants have steadily raised the operating rate and recovered from the temporary suspension after Japan Earthquake. The two furnaces at the group smelter, Akita Zinc returned to the normal operation on May 1 and currently entered almost full capacity production, he said. He also referred to capacity expansion at Tizapa zinc mine in Mexico when the 40% capacity expansion works will complete at the end of June and the output will increase in and after July.

Mr. Yamazaki explained Akita Zinc lost 10,000 tonnes of zinc production in April since the production facilities were downed by the main earthquake on March 11 and the minor shock on April 7. The two furnaces have returned to normal operations while the site is located in Tohoku Electric Power’s service area and the electric power saving is required against the large utility customers during July-September, he referred.

Mr. Yamazaki said the group’s new zinc dust recycling plant is currently under 80-90% operation in process linkage with Akita Zinc though the plant was originally scheduled to enter full operation in April. He showed an expectation the recycling plant would reach full capacity operation in 3Q 2011.

As for Kosaka Smelting & Refining’s metal recycling business, Mr. Yamazaki explained the current operating rate is reaching 80% with know-how storage during 3-year commercial operation so far. He showed an intention to start more various metal recycling at Kosaka and grow up the plant to the world state-of-the-art metal recycling smelter.

He also gave a strategic view for Akita Zinc’s indium production. Akita Zinc produces indium from zinc concentrate as well as recycles used ITO (indium-tin-oxide) with abundant output capacities. He said Akita Zinc should keep the current output capacity and raise the business profit with competitive cost. The firm aims to increase the indium production as much as possible when indium market price is surging.

As to Tizapa zinc mine in Mexico, Mr. Yamazaki said Dowa Metals & Mining can raise the ore consumption rate from investing mines to 35% in and after July, including secondary materials. The firm tries to raise the self-ore utilization to 50%.