Toho Zinc to Start Ore Plant Construction at Rasp Mine in 2011

Mr. Tatsuya Tejima, president of Toho Zinc, revealed the firm starts plant construction at Rasp zinc mine in Australia in 2011. Toho Zinc plans to complete construction of ore processing and concentrating plants by June 2012 and start test operation in July 2012. The firm aims to start full production at 70,000-90,000 tonnes per year for zinc concentrate and at 40,000-60,000 tonnes per year for lead concentrate. The initial investment is estimated at around 12 billion yen.

Rasp zinc mine is located in Broken Hill, New South Wales. Toho Zinc holds an interest in Rasp mine through its wholly owned subsidiary, CBH Resources.

Toho Zinc prepares for final feasibility study of the mine by the end of December since New South Wales administration is expected to give environmental and mining permissions to Toho Zinc within this year. The firm will check engineering details and start plant construction in mid 2011.

Rasp mine’s operation is scheduled for 2012-2029 while Toho Zinc expects for longer mine life by exploration in surrounding areas. The firm will raise 12 billion yen investing fund through utilization of policy finance provided by Japan Bank for International Cooperation.

In New South Wales, Endeavor zinc mine is also located in which Toho Zinc holds an interest through CBH Resources. Endeavor mine is in operation. The mine returned to full production of zinc concentrate in October at approximately 100,000 tonnes per year though the mine had reduced the output due to zinc price down after Lehman Shock. Toho Zinc’s ore procurement rate from its investing mines will rise to 70-80% from present 30-35% when Endeavor mine and Rasp mine enter full operations.