DOWA to Improve Recycling Furnace Operation Rate at Kosaka

DOWA Holdings aims to raise the operating rate of a new recycling furnace in Kosaka Smelting & Refining, Akita, Japan to 80% in the second half of fiscal 2008 (Oct08-Mar09). The recycling furnace started testing operation in August 2007 and shifted to commercial operation in April 2008. The current operating rate is around 50%. DOWA plans to improve bottlenecks of the furnace during a maintenance period from late August to mid September and raise the operating ratio.

Kosaka Smelting & Refining, a metal refining subsidiary of DOWA Holdings, has utilized recycling materials such as wasted circuit boards and automotive parts as well as ores. DOWA invested 12 billion yen to introduce a new recycling furnace at Kosaka. Kosaka stopped a flash furnace, which smelts nonferrous metals from ores, after the recycling furnace entered commercial operation in April 2008.

DOWA’s gold production is estimated to decrease by 53% to 3.3 tonnes in the first half of F2008 from the corresponding period of F2007 while the silver output to decrease by 46% to 156 tonnes. The firm reduces the productions due to the low operating rate of the new recycling furnace at Kosaka.

The copper output is estimated to decrease by 2% to 60,762 tonnes for 1H08 from a year earlier. Copper production is largely decreasing at Kosaka since the subsidiary shifted to a recycling furnace from a previous flash furnace. On the other hand, copper output will increase at another affiliate, Onahama Smelting & Refining, Fukushima, Japan.

On the other hand, the lead production will increase by 20% to 6,402 tonnes during 1H08 from 1H07. Kosaka’s new furnace can recycle lead though the subsidiary has recycled lead with the specialized facility so far.