Toho Zinc Purchases Elura Mine in Australia
Toho Zinc announced on Tuesday that Consolidated Broken Hill, in which Toho Zinc is the largest share, completed purchase contract of Elura Mine in Australia from Pasminco on September 12. First ore shipment is expected to arrive in November to December. Toho Zinc is going to expand ore sales in eastern Asia, especially China as well as it uses ore itself.

Elura Mine is at around center of New South Wales, and has been developed by Pasminco for around 20 years with underground mining. The mine produces 180,000 dry tonnes of zinc concentrate with 100,000 tonnes of pure zinc and 90,000 dry tonnes of lead concentrate with 60,000 tonnes of pure lead. The mine with 9 years life produces 51% zinc contained ore and 57% lead contained ore.

Toho Zinc acquired 8% share in Sydney based CBH in June 2002 to secure raw material source while the firm has secured ore from Peru. The firm has negotiated to acquire the mine along with increasing interest in CBH to 10.5%.

Toho Zinc injected 7.5 million Australian dollars of capital in CBH with its acquiring the mine increasing its share in CBH to 29.8%. CBH is said to acquire the mine for 28 million Australian dollars.

CBH sells 50,000 dry tonnes of zinc concentrate and 70,000 dry tonnes of lead concentrate to Pasminco. Toho Zinc has right to buy and sell rest of the ore with 130,000 dry tonnes of zinc concentrate and 20,000 dry tonnes of lead concentrate, of which the firm will keep 30-40% of zinc and 30% of lead for itself selling rest of balance to ore hunger countries in eastern Asia including South Korea and China.

Toho Zinc(Japanese Site)